The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the proportional (percentage) usage of the Janitorial Department by the:

Complete Question:

Departmental information for the four departments at Samoa Industries is provided below. Total Cost Cost Driver Square Feet Number of employees Janitorial $150,000 square footage serviced 200 Cafeteria 50,000 Number of employees 20,000 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 The Janitorial and Cafeteria departments are support departments Samoa uses the sequential method to allocate support department costs, first allocating the costs Department to the Cafeteria, Cutting and Assembly departments Determine the proportional (percentage) usage of the Janitorial Department by the a. Cafeteria Department b. Cutting Department c. Assembly Department

Samoa Industries

Proportional (percentage) usage of the Janitorial Department:

Cafeteria = 50%

Cutting = 10%

Assembly = 40%

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

Proportional (percentage) usage of the Janitorial Department:

Cafeteria = 50% (20,000/40,000 * 100)

Cutting = 10% (4,000/40,000 * 100)

Assembly = 40% (16,000/40,000 * 100)

Cost Allocation of the Janitorial Department:

Cafeteria = 50% * $150,000 = $75,000

Cutting = 10% * $150,000 =        15,000

Assembly = 40,% * $150,000 = 60,000

Total =                                    $150,000

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