P4-5
Cake Products Inc, is divided into five departments, mixing, blending,
finishing, factory office and building maintenance. The first three departments
are engaged in production work. Factory Office and Building Maintenance are
service departments. During the month of June, the following factory overhead
was incurred for the various departments:
mixing $21,000 factory office $9,000
Blending $18,000 building maintenance $6,400
finishing $25,000
The
bases for distributing service department expenses to the other departments
follow:
Building
maintenance - on the basis of floor space occupied by the other departments as
follows: mixing 10,000 sqft, blending $4,500 sqft, finishing 10,500 sqft and
factory office 7,000 sq ft.
Factory
office - on the basis of number of employees as follows : mixing 30, blending
20 and finishing 50 Prepare schedules showing the distribution of the service
departments expenses for the following:
1.
The direct distribution method
2.
The sequential distribution method in the order of number of other departments
served.
TUTORIAL
PREVIEW
|
|
|
Bldg.
|
Factory
|
|
|
|
|
|
Description
|
Maint.
|
Office
|
Mixing
|
Blending
|
Finishing
|
Total
|
|
|
Total
from factory overhead analysis sheets…
|
6,400
|
9,000
|
21,000
|
18,000
|
25,000
|
79,400
|
|
|
|
|
|
|
|
|
|
|
|
Build. Maint
distribution -- (Basis sq. ft. floor
|
|
|
|
|
|
|
|
|
space)
|
|
|
|
|
|
|
|
File name P4-5
Cake Products Inc.xls File type: xls PRICE: $8
