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Tanya [424]
3 years ago
14

Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all thr

ee of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Service Depts. Production Depts. Payroll Maintenance Cutting AssemblyDirect costs $20,400 $25,500 $76,500 $105,400No. of personnel 15 15 45Sq. ft. of space 10,000 15,000The total cost of operating the Maintenance Department for the current period is:a. $14,280.b. $15,912.c. $25,500.d. $29,580.e. $22,412.
Business
1 answer:
Fittoniya [83]3 years ago
7 0

Answer:

d. $29,580.

Explanation:

Note: The data in the question are merged together and they are first sorted and separated as given in the attached file before the question is answered.

Cost individually incurred by Maintenance = $25,500

Share of Payroll Department cost = $20,400 * (15/75) = $4,080

Total Maintenance Cost = $25,500 + $4,080 = $29,580.

Therefore, he total cost of operating the Maintenance Department for the current period is d. $29,580.

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1 year ago
Match the different types of incomes to their sources.
Rzqust [24]
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7 0
3 years ago
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Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours
Alchen [17]

Answer:

1. $8.25

2. $313,500

Explanation:

Given that,

Variable overhead cost per direct labor-hour = $2.00

Total fixed overhead cost per year = $250,000

Budgeted standard direct labor-hours (denominator level of activity) = 40,000

Actual direct labor-hours = 39,000

Standard direct labor-hours allowed for the actual output = 38,000

1. Total overhead cost at denominator level of activity:

= Total fixed overhead + Total variable overhead

= $250,000  + (40,000  × $2.00 )

= $250,000  + $80,000

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Predetermined overhead rate:

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= $330,000 ÷ 40,000

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3 0
4 years ago
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