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Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $28,700 Plant security 8,400 Plant nurse's salary and office expense 9,800 Factory depreciation (building) 28,000 Equipment depreciation 21,000 Machine maintenance 9,800 Plant cafeteria cost subsidy 7,000 Total $112, 700 The following additional data have been collected for the three producing departments: Selecting Cost Allocation Bases and Direct Method Allocations Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $45,100 Plant security 13,200 Plant nurse's salary and office expense 15,400 Factory depreciation (building) 44,000 Equipment depreciation 33,000 Machine maintenance 15,400 Plant cafeteria cost subsidy 11,000 $177,100 The following additional data have been collected for the three producing departments: P1 P2 P3 Number of employees 20 30 10 Space occupied (square feet) 12,000 6,000 6,000 Direct labor hours 3,400 5,000 1,600 Machine hours 1,500 600 900 Number of nurse office visits 25 20 5

Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $28,700 Plant security 8,400 Plant nurse's salary and office expense 9,800 Factory depreciation (building) 28,000 Equipment depreciation 21,000 Machine maintenance 9,800 Plant cafeteria cost subsidy 7,000 Total $112, 700 The following additional data have been collected for the three producing departments: Selecting Cost Allocation Bases and Direct Method Allocations Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $45,100 Plant security 13,200 Plant nurse's salary and office expense 15,400 Factory depreciation (building) 44,000 Equipment depreciation 33,000 Machine maintenance 15,400 Plant cafeteria cost subsidy 11,000 $177,100 The following additional data have been collected for the three producing departments: P1 P2 P3 Number of employees 20 30 10 Space occupied (square feet) 12,000 6,000 6,000 Direct labor hours 3,400 5,000 1,600 Machine hours 1,500 600 900 Number of nurse office visits 25 20 5

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
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Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $28,700 Plant security 8,400 Plant nurse's salary and office expense 9,800 Factory depreciation (building) 28,000 Equipment depreciation 21,000 Machine maintenance 9,800 Plant cafeteria cost subsidy 7,000 Total $112, 700 The following additional data have been collected for the three producing departments:
Transcribed Image Text:Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $28,700 Plant security 8,400 Plant nurse's salary and office expense 9,800 Factory depreciation (building) 28,000 Equipment depreciation 21,000 Machine maintenance 9,800 Plant cafeteria cost subsidy 7,000 Total $112, 700 The following additional data have been collected for the three producing departments:
Selecting Cost Allocation Bases and Direct Method Allocations Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $45,100 Plant security 13,200 Plant nurse's salary and office expense 15,400 Factory depreciation (building) 44,000 Equipment depreciation 33,000 Machine maintenance 15,400 Plant cafeteria cost subsidy 11,000 $177,100 The following additional data have been collected for the three producing departments: P1 P2 P3 Number of employees 20 30 10 Space occupied (square feet) 12,000 6,000 6,000 Direct labor hours 3,400 5,000 1,600 Machine hours 1,500 600 900 Number of nurse office visits 25 20 5
Transcribed Image Text:Selecting Cost Allocation Bases and Direct Method Allocations Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $45,100 Plant security 13,200 Plant nurse's salary and office expense 15,400 Factory depreciation (building) 44,000 Equipment depreciation 33,000 Machine maintenance 15,400 Plant cafeteria cost subsidy 11,000 $177,100 The following additional data have been collected for the three producing departments: P1 P2 P3 Number of employees 20 30 10 Space occupied (square feet) 12,000 6,000 6,000 Direct labor hours 3,400 5,000 1,600 Machine hours 1,500 600 900 Number of nurse office visits 25 20 5
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