Quinlan inc has two support departments maintenance and

Reference no: EM13574169

Quinlan, inc. has two support departments (maintenance and personnel) and two operating departments (tables and chairs). The maintenance department provides more services to the personnel department than the personnel department provides to maintenance. Maintenenace department costs are allocated o other departments using square feet and Personnel department costs are allocated based on the number of employees. Once the support department costs have been allocated to the operating departments, each operating epartment allocates its total costs to units produced.

Support Departments Operating Departments

Maintenace Personnel Tables Chairs

Direct costs $27,000 $24,000 $44,000 $21,000

Square feet 6,000 10,000 60,000 20,000

Number of employees 20 40 70 80

Units produced ---- ----- 4,000 2,000

1. Assume the step-down method is used. The amount of cost allocated from personnel to the table department is

2. Assume the step-down method is used. The amount of cost allocated from personnel to maintenance is

Reference no: EM13574169

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