Wewantmore Company has two (2) service departments and two (2) operating departments. Budgeted costs and...
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Wewantmore Company has two (2) service departments and two (2) operating departments. Budgeted costs and other data relating to these departments are presented below Service Departments Operating Departments Janitorial Personnel Departmental $54,000 $200,000 $650,000 $800,000 costs Square feet occupied 1,000 3,000 12,000 15,000 Number of employees 10 45 76,000 Direct labor hours 92,000 The costs of Janitorial are allocated on the basis of square feet of space occupied. Personnel costs are allocated on the basis of the number of employees. The departmental costs for the operating departments are overhead costs. Predetermined overhead rates in the operating departments are computed on the basis of direct labor hours
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