Question Completion:
(a) Cafeteria, (b) Cutting, and (c) Assembly departments.
Answer:
Samoa Industries
Departmental Square Number Allocation of
Cost Feet of employees Janitorial
Janitorial $150,000 ($150,000)
Cafeteria 50,000 20,000 12 75,000
Cutting 1,125,000 4,000 120 15,000
Assembly 1,100,000 16,000 40 60,000
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
b) Allocation of Janitorial department cost is based on square footage serviced:
Cafeteria = 20,000/40,000 * $150,000 = $75,000
Cutting = 4,000/40,000 * $150,000 = $15,000
Assembly = 16,000/40,000 * $150,000 = $60,000
