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Sasha Company allocates the estimated $192,600 of its accounting department costs to its
production and sales departments since the accounting department supports the other two
departments particularly with regard to payroll and accounts payable functions. The costs will be
allocated based on the number of employees using the direct method. Information regarding
costs and employees follows:
Department
Employees
Accounting
4
Production
37
Sales
14
How much of the accounting department costs will be allocated to the production?
Department Employees
Accounting 4
Production 37
Sales 14
Solution
Sasha Company allocates the estimated $192,600 of its accounting department costs to its
production and sales departments
$192,600 are allocated for the 37 employees of the production department and 14 employees of
the sales department.
So, the amount of cost allocated to the production department will be = [37 / 51] * $192,600 =
$139,729.41
I hope my solution solves your query.
Regards.

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Sasha Company allocates the estimated $192-600 of its accounting depar.docx

  • 1. Sasha Company allocates the estimated $192,600 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows: Department Employees Accounting 4 Production 37 Sales 14 How much of the accounting department costs will be allocated to the production? Department Employees Accounting 4 Production 37 Sales 14 Solution Sasha Company allocates the estimated $192,600 of its accounting department costs to its production and sales departments
  • 2. $192,600 are allocated for the 37 employees of the production department and 14 employees of the sales department. So, the amount of cost allocated to the production department will be = [37 / 51] * $192,600 = $139,729.41 I hope my solution solves your query. Regards.