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Arbon Company has three service departments and two operating departments

Accounting

Arbon Company has three service departments and two operating departments. Selected data concerning the five department: presented below: 
Service Departments Operating Departments 
Equipment Administrative Janitorial Maintenance Prep Finishing Total Costs $89,000 $67,800 $36,000 $256,100 $498,600 $947,500 Number of employees 80 60 240 600 300 1,280 Square metres of space occupied 300 1,200 1,000 2,000 7,000 11,500 Machine-hours 20,000 30,000 50,000 
110•1•11•1•11•1•111.  
The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours). 
Required: Using the step-down method, allocate the service department costs to the operating departments. (Negative amounts should b indicated by a minus sign.) 

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  Service Departments Operating Departments  
  Administrative Janitorial Maintenance Prep Finishing Total
Departmental costs before allocations 89000 67800 36000 256100 498600 947500
Allocations:            
Administrative -89000 4450 17800 44500 22250  
Janitorial   -72250 7225 14450 50575  
Maintenance     -61025 24410 36615  
Total costs after allocation $ 0 0 0 339460 608040 947500
Workings:            
  Service Departments Operating Departments  
  Administrative Janitorial Maintenance Prep Finishing Total
Administrative            
Basis: Number of employee   60 240 600 300 1200
Allocation ratio   0.05 0.2 0.5 0.25 1
Janitorial            
Basis: Space occupied     1000 2000 7000 10000
Allocation ratio     0.1 0.2 0.7 1
Maintenance            
Basis: Machine-hours       20000 30000 50000
Allocation ratio       0.4 0.6 1