Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows.Department Employees Square Feet Asset ValuesMaterials 34 32,000 $ 13,200Personnel 17 16,000 1,980Manufacturing 68 88,000 34,980Packaging 51 24,000 15,840Total 170 160,000 $ 66,000The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases.Indirect Expense Cost Allocation BaseSupervision $ 83,100 Number of employeesUtilities 56,000 Square feet occupiedInsurance 25,500 Asset valuesTotal $ 164,600  Allocate each of the three indirect expenses to the four departments.

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. Department Direct Expenses Number Purchase Orders Square FeetPurchasing $ 32,000    Maintenance 18,000    Fabrication 96,000 16 3,300Assembly 62,000 4 2,700Multiple Choice$9,000.$9,900.$6,400.$25,600.$8,100.

What would be the most appropriate way of apportioning depreciation costs across different manufacturing departments in a business?Floor spaceNumbers of personnelValue of buildings and equipmentAdministration costs

The following is a system of simultaneous linear equations to allocate costs using the reciprocal method. Matrix algebra is not required.The following costs were incurred in three operating departments and three service departments in Westmoreland Company.Department Direct Costs LabelSubassemblies $ 559,000 P1Final assembly 784,000 P2Marketing 294,000 P3Building occupancy 94,000 S1Research and development 129,000 S2Supervision 54,000 S3Use of services by other departments is as follows.  User DepartmentsService Cost Center Sub-assemblies Final Assembly Marketing Building Occupancy R&D SupervisionBuilding occupancy 0.30 0.25 0.20 --- 0.10 0.15R&D 0.50 0.50 --- --- --- ---Supervision 0.30 0.20 0.30 0.10 0.10 ---The equation for department P1 (subassemblies) is:Multiple ChoiceP1 = $559,000 + 0.30S1 + 0.50S2 + 0.30S3.P1 = 0.30S1 + 0.50S.P1 = $559,000 + 0.25P2 + 0.20P3 + 0.10S2 + 0.15S3.P1 = 0.30S1 + 0.50S2 + 0.30S3.

Veneer Company has two service departments and two producing departments. The number of employees in each department is:Personnel 10Cafeteria 25Producing Department A 456Producing Department B 249  740The department costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $76,960 during a given period, the amount of cost allocated to Department B under the direct method would be:Note: Do not round intermediate calculations.Multiple Choice$25,896.00.$47,424.00.$0.$27,181.62.

Alpha Company has two service departments, the Maintenance and Personnel departments. The Maintenance Department costs of $312689 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $210181 are allocated based on the number of employees. The costs of operating departments A and B are $208,000 and $312,000, respectively. Data on budgeted maintenance-hours and number of employees, and costs are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Maintenance DepartmentPersonnel DepartmentABBudgeted costs$312689$210181$208,000$312,000Budgeted maintenance-hoursNA 805 1225 682 Number of employees50NA270630 Using the step-down method of cost allocation, compute the amount of the Maintenance Department cost that will be allocated to Department B if the Maintenance Department cost is allocated first.