10.40 - Building occupancy cost $ (360,000 ) $ 21,600 $...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
10.40 (45 min) Step method with three service departments a. Allocation of costs using the step method Allocation Base Building Occupan cy Human resourc es Equipmen t Maintena nce Mechani cal Repair Body Work Building area, sq ft 5,000 15,000 10,0 00 180, 000 45,000 Employees 9 5 6 35 50 Equipment value $12,000 $240,0 00 $ 35,000 $ 624,000 $ 324,00 0 Budgeted departmental costs $ 360,000 $500,0 00 $ 264,000 $ 1,350,00 0 $ 965,00 0 Allocation of service costs Building Occupan cy Human resourc es Equipmen t Maintena nce Mechani cal Repair Body Work Total Building area, sq ft - 15,000 10,0 00 180, 000 45,000 250,00 0 Proportion of Building area sq ft 0.06 0.04 0.72 0.18 1.00 Allocation of
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Building occupancy cost $ (360,000 ) $ 21,600 $ 14,400 $ 259,200 $ 64,800 $ - Number of employees 6 35 50 9 1 Proportion of number of employees- - 0. 0659 0.3 846 0.5 495 1.00 Human resources direct cost $ 500,000 Allocation of adjusted Human resources cost $(521,6 00) $ 34,391 $ 200,615 $ 286,59 3 $ - Value of equipment $ 624,000 $ 324,00 0 948,000 Proportion value of equipment- - - 0.6 582 0.3 418 1.00 Equipment direct cost $ 264,000 Allocation of adjusted Equipment cost $ (312,791) $ 205,888 $ 106,90 3 $ - Total allocated service costs to jobs $ 665,703 $ 458,29 7 $1,124, 000...
View Full Document

Page1 / 2

10.40 - Building occupancy cost $ (360,000 ) $ 21,600 $...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online