Blower Company is divided into four departments Departments A and B

Question

Blower Company is divided into four departments. Departments A and B are service departments and Departments 1 and 2 are operating (production) departments. The services of the two service departments are used by the other departments as follows:

	Dept. A	Dept. B	Dept. 1	Dept. 2
Services of:
Department A............		50%	20%	30%
Department B............			40%	60%
Direct costs incurred
by each department......	$60,000	$50,000	$70,000	$80,000

Complete the following table:

	Allocation of Expenses to Departments
	Department A	Department B	Department C	Department D
Total direct
Department expenses..	$60,000	$50,000	$ 70,000	$ 80,000
Service department expenses
Department A............
Subtotal........................
Department B............
Total.............................