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Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage...

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Accounting

  1. Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs.

    It has the following information about its two service departments and two production departments, Cutting and Assembly:

    Costs Square Feet Number of Employees
    Janitorial Department $450,000 100 20
    Cafeteria Department 200,000 10,000 10
    Cutting Department 1,500,000 2,000 60
    Assembly Department 3,000,000 8,000 20

    The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is

    a. 75%

    b. 18.2%

    c. 22.2%

    d. 25%

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