Answer :
Complete Question:
Departmental information for the four departments at Samoa Industries is provided below. Total Cost Cost Driver Square Feet Number of employees Janitorial $150,000 square footage serviced 200 Cafeteria 50,000 Number of employees 20,000 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 The Janitorial and Cafeteria departments are support departments Samoa uses the sequential method to allocate support department costs, first allocating the costs Department to the Cafeteria, Cutting and Assembly departments Determine the proportional (percentage) usage of the Janitorial Department by the a. Cafeteria Department b. Cutting Department c. Assembly Department
Answer:
Samoa Industries
Proportional (percentage) usage of the Janitorial Department:
Cafeteria = 50%
Cutting = 10%
Assembly = 40%
Explanation:
a) Data and Calculations:
Total Cost Cost Driver Square Feet Number of
employees
Janitorial $150,000 Square footage serviced 200 40
Cafeteria 50,000 Number of employees 20,000 12
Cutting 1,125,000 4,000 120
Assembly 1,100,000 16,000 40
Proportional (percentage) usage of the Janitorial Department:
Cafeteria = 50% (20,000/40,000 * 100)
Cutting = 10% (4,000/40,000 * 100)
Assembly = 40% (16,000/40,000 * 100)
Cost Allocation of the Janitorial Department:
Cafeteria = 50% * $150,000 = $75,000
Cutting = 10% * $150,000 = 15,000
Assembly = 40,% * $150,000 = 60,000
Total = $150,000