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Category > Accounting Posted 22 May 2017 My Price 9.00

 Krenz Foundry

Q3. Krenz Foundry has 3 support departments and 2 operating departments. Support cost and allocation base information is provided below.

 

Support Departments

Operating Departments

 

Maintenance Food Service personnel

Casting

Finishing

Direct support cost

$10,000

$20,000

$15,000

 

 

Allocation bases:

 

 

 

 

 

Employees

10

8

9

20

30

Square feet

2,000

3,000

1,000

10,000

5,000

 

Manintencance costs are allocated on the basis of square feet, and the other support costs are allocated on the basis of number of employees. Maintenance provides the most services to other support deparments, and food service provides the next most services to other support departments.

If the direct method of allocation is used, calculate the maintenance department cost that will be allocated to:

1)     Personnnel

2)     Casting

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Answers

SuperTutor
(15)
Status NEW Posted 22 May 2017 06:05 AM My Price 9.00

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