Calculate total cost that is allocated from Janitorial

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Question - Kelsie Manufacturing Ltd has two support departments (Personnel and Janitorial) that provides services to two manufacturing departments (Assembly and Finishing). The Personnel Department cost is allocated based on employees and the Janitorial Department cost is allocated based on space. The following information is available.

 

User of Services

Support Departments

Manufacturing Departments

Janitorial

Personnel

Assembly

Finishing

Budgeted cost ($)

15,000

45,000

160,000

220,000

No. of employees

15

5

25

60

Space (sq m)

-

21,000

45,000

34,000

Direct labor hours

 

 

 

40,000

Machine hours

 

 

30,000

 

Question 1 - Using the step-down method, calculate the total cost that is allocated out from the Janitorial Department. Please round your answer to the nearest dollar.

Question 2 - What is the total budgeted overhead cost of the Assembly department that is used to compute its departmental overhead rate? Please round your answer to the nearest dollar.

Reference no: EM132491018

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