Ask Question
25 July, 11:43

Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly:

Square Feet Number of

Employees

Janitorial Department 100 20

Cafeteria Department 10,000 10

Cutting Department 2,000 60

Assembly Department 8,000 20

The percentage (proportional) usage of the Janitorial Department by the Cutting Department is

+1
Answers (1)
  1. 25 July, 11:46
    0
    Cutting department = 9.9%

    Explanation:

    Giving the following information:

    Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced.

    Square Feet

    Janitorial Department 100

    Cafeteria Department 10,000

    Cutting Department 2,000

    Assembly Department 8,000

    Total square feet = 20,100

    Cutting department = 2,000/20,100 = 9.9%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers