What amount of the payroll department costs will be allocated to the molding department?

Nov 27th, 2015
KateS
Category:
Accounting
Price: $5 USD

Question description

Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1), finishing (P2), and packaging (P3) departments. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet which the production department occupies within the factory. Information about the departments is presented below:

Department                                     Costs                                     Employees                             feet occupied

Payroll (S1)                                130,000                                           2                           2,000

Maintenance(S2)                          220,000                                8                                     64,000

Molding (P1)                                                                         62                                      100,000

Finishing(P2)                                                                         50                                       60,000

Packaging(P3)                                                                        25                                     40,000

What amount of the payroll department costs will be allocated to the molding department?




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