Murphy Company

Order 100% plagiarism free essay on Murphy Company

Murphy Company has two service departments, Maintenance andPersonnel, as well as two production departments, Mixing andFinishing. Maintenance costs are allocated based on square footagewhile personnel costs are allocated based on number of employees.The following information has been gathered for the currentyear:
Maintenance
Personnel
Mixing
Finishing
Direct dept. costs $126,000 $84,000 $105,000 $175,000
Square footage 800 400 1,600 1,200
Number of employees 8 12 24 32
If the step-down method of allocating costs is used and thePersonnel Department is allocated first, then the amount ofoverhead that would be allocated from Personnel to Mixing is_____.
A. $78,000
B. $63,000
C. $31,500
D. $58,500Â as well as two production departments, Mixing andFinishing. Maintenance costs are allocated based on square footagewhile personnel costs are allocated based on number of employees.The following information has been gathered for the currentyear:
Maintenance
Personnel
Mixing
Finishing
Direct dept. costs $126,000 $84,000 $105,000 $175,000
Square footage 800 400 1,600 1,200
Number of employees 8 12 24 32
If the step-down method of allocating costs is used and thePersonnel Department is allocated first, then the amount ofoverhead that would be allocated from Personnel to Mixing is_____.
A. $78,000
B. $63,000
C. $31,500
D. $58,500

Murphy Company

Order 100% plagiarism free essay on Murphy Company

Murphy Company has two service departments, Maintenance andPersonnel, as well as two production departments, Mixing andFinishing. Maintenance costs are allocated based on square footagewhile personnel costs are allocated based on number of employees.The following information has been gathered for the currentyear:
Maintenance
Personnel
Mixing
Finishing
Direct dept. costs $126,000 $84,000 $105,000 $175,000
Square footage 800 400 1,600 1,200
Number of employees 8 12 24 32
If the step-down method of allocating costs is used and thePersonnel Department is allocated first, then the amount ofoverhead that would be allocated from Personnel to Mixing is_____.
A. $78,000
B. $63,000
C. $31,500
D. $58,500Â as well as two production departments, Mixing andFinishing. Maintenance costs are allocated based on square footagewhile personnel costs are allocated based on number of employees.The following information has been gathered for the currentyear:
Maintenance
Personnel
Mixing
Finishing
Direct dept. costs $126,000 $84,000 $105,000 $175,000
Square footage 800 400 1,600 1,200
Number of employees 8 12 24 32
If the step-down method of allocating costs is used and thePersonnel Department is allocated first, then the amount ofoverhead that would be allocated from Personnel to Mixing is_____.
A. $78,000
B. $63,000
C. $31,500
D. $58,500