Question

Departmental information for the four departments at Samoa Industries is provided below.

Total Cost Cost Driver Square Feet Number of
Employees
Janitorial $150,000 Square footage serviced 200 40
Cafeteria 50,000 Number of employees 20,000 12
Cutting 1,125,000 4,000 120
Assembly 1,100,000 16,000 40
The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments.
1. Determine the dollar amount of the Janitorial Department costs to be allocated to the:
a. Cafeteria Department
b. Cutting Department
2. Determine the dollar amount of the Cafeteria Department costs to be allocated to the:
a. Cutting Department
b. Assembly Department

Answer 1

Samoa Industries

1. The dollar amount of the Janitorial Department costs to be allocated to the:

a. Cafeteria Department = $75,000

b. Cutting Department = $15,000

2. The dollar amount of the Cafeteria Department costs to be allocated to the:

a. Cutting Department = $93,750

b. Assembly Department = $31,250

Step-by-step explanation:

a) Data and Calculations:

Total Cost Cost Driver Square Feet Number of

Employees

Janitorial $150,000 Square footage serviced 200 40

Cafeteria 50,000 Number of employees 20,000 12

Cutting 1,125,000 4,000 120

Assembly 1,100,000 16,000 40

Allocation of Departmental Costs:

Janitorial Cafeteria Cutting Assembly

Total Costs $150,000 $50,000 $1,125,000 $1,100,000

Janitorial dept. (150,000) 75,000 15,000 60,000

Cafeteria dept. 0 (125,000) 93,750 31,250

Total allocated costs $1,233,750 $1,191,250