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

Answer 1

Answer the answer is A

Step-by-step explanation:

Answer 2

Question Completion:

(a) Cafeteria, (b) Cutting, and (c) Assembly departments.

Answer:

Samoa Industries

Departmental Square Number Allocation of

Cost Feet of employees Janitorial

Janitorial $150,000 ($150,000)

Cafeteria 50,000 20,000 12 75,000

Cutting 1,125,000 4,000 120 15,000

Assembly 1,100,000 16,000 40 60,000

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

b) Allocation of Janitorial department cost is based on square footage serviced:

Cafeteria = 20,000/40,000 * $150,000 = $75,000

Cutting = 4,000/40,000 * $150,000 = $15,000

Assembly = 16,000/40,000 * $150,000 = $60,000