Determine the total costs after allocating the service

Reference no: EM13485694

) Salerno Company has two service departments, Maintenance and Cafeteria, as well as two production departments, Mixing and Bottling. Maintenance Department costs are allocated based on square footage and Cafeteria Department costs are allocated based on number of employees. The following data was available:

Maintenance Cafeteria Mixing Bottling

Direct costs $200,000 $120,000 $76,000 $85,000

Square footage 1,000 2,000 4,000 6,000

Number of employees 30 20 60 100

Direct labor hours 8,000 6,000

A) Determine the total costs after allocating the service departments' costs to producing departments using the direct method.

B) Determine the total costs after allocating the service departments' costs to producing departments using the step-down method.

Reference no: EM13485694

Questions Cloud

Johannes corporation uses a budgeted factory overhead rate : nbspjohannes corporation uses a budgeted factory overhead rate to apply overhead to production. direct labor costs are

A cost which remains constant per unit at various levels of : a cost which remains constant per unit at various levels of activity is aa.fixed cost.b.manufacturing cost.c.mixed

Using variable costing prepare an income statement for the : randy company has obtained the following data for the first year of operationssalesnbspnbsp nbsp nbsp nbsp nbsp nbsp

Draft a memo from the treasurer to harry tactfully : the revere company currently has good earnings and a capital structure thats 20 debt. its eps is in the upper quarter

Determine the total costs after allocating the service : salerno company has two service departments maintenance and cafeteria as well as two production departments mixing and

If smith company buys the part from jones company instead : smith company needs 1000 units of a certain part for its manufacturing process. it can buy the part from jones company

Francis bacon believed that you should read neither to : 1- francis bacon believed that you should read neither to contradict nor believe but rather to weigh and evaluate.2-

How is increasing leverage affecting financial performance : the connecticut computer company has the following selected financial results.nbsp10 debt40 debt75 debtdebt

A companys perpetual preferred stock currently trades at 80 : a companys perpetual preferred stock currently trades at 80 per share and pays a 6.00 annual dividend per share. if the

User Account

All Pages