Reference no: EM131564713

Problem -

Fact pattern: Gemini Inc., has two service departments (the Systems Department and the Facilities Department) that provide support to the company's three production departments (Machining Department, Assembly Department, and Finishing Department). The overhead costs of the Systems Department are allocated to other departments on the basis of computer usage hours. The overhead costs of the Facilities Department are allocated based on square feet occupied (in thousands). Other information pertaining to Logo is as follows:

Department Overhead Computer Usage Hours Square Feet Occupied

Systems $120,000 350 1,750

Facilities $24,000 1,050 1,050

Machining $240,000 4,200 3,500

Assembly $330,000 2,100 5,250

Finishing $372,000 3,150 8,750

Total 10,850 20,300

Logo employs the direct method of allocating service department costs. The overhead of the Systems Department would be allocated by dividing the overhead amount by

A 1,400 hours

B 10,500 hours

C 9,450 hours

D 10,850 hours

How much of the Facilities overhead would the Assembly Department receive?

A $7,200

B $6,207

C $5,333

D $6,545