The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. (Do not round your intermediate calculations.) Operating costs No. of purchase orders Sq. ft. of space Multiple Choice $13,200. $8,800. $17,600. $13,800. 400 000 Purchasing Maintenance Fabrication Assembly $46,000 $ 26,400 $110,000 $76,000 14 4,000 6 2,000

The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. (Do not round your intermediate calculations.) Operating costs No. of purchase orders Sq. ft. of space Multiple Choice $13,200. $8,800. $17,600. $13,800. 400 000 Purchasing Maintenance Fabrication Assembly $46,000 $ 26,400 $110,000 $76,000 14 4,000 6 2,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1PB: Support department cost allocation Hooligan Adventure Supply produces and sells various outdoor...

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The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. (Do not round your intermediate calculations.) Purchasing Maintenance Fabrication Assembly Operating costs No. of purchase orders Sq. ft. of space $48,000 $27,600 $112,000 $78,000 15 4,100 1,900 Multiple Choice $12,000. $18,860. $13,800. $8,740.
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[The following information applies to the questions displayed below.] National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. Rent Advertising Insurance Total $ 45,000 25,000 10,000 $ 80,000 The company occupies 4,000 square feet of a rented building. In prior periods, the company divided the $80,000 of indirect expenses by 4,000 square feet to find an average cost of $20 per square foot, and then allocated indirect expenses to each department based on the square feet it occupied. The company now wants to allocate indirect expenses using the allocation bases shown below. Department Housewares Sporting Total Square Feet 1,440 2,560 4,000 Sales $ 370,000 130,000 $ 500,000 Value of Insured Assets $59,000 41,000 $ 100,000 Required: 1. Allocate indirect expenses to the two departments using the allocation method used in prior periods.
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