Operating Dep Operating Dep

Cafeteria Engineering
1 2
No. of employees 10 40 500 200
Departmental cost 69,375
Maintenance cost (69,375)
69,375 * (500 / 700) 49,554
69,375 * (200 / 700) 19,821
Engineering cost 95000
69,375 * (500 / 700) 67,857
69,375 * (200 / 700) 27,143

Building & Operating Dep Operating Dep

Personnel
Grounds A B
Square feet 1000 3000 12000 15000
Direct labor-hours 76000 92000
Number of employees 10 5 45 55
Departmental cost 54,000 200,000 650,000 800,000
Building & Grounds (54,000)
54000*(12000/27000) 24,000
54000*(15000/27000) 30,000

Personnel (200,000)
200000*(45/100) 90,000
200000*(55/100) 110,000
Total Costs after allocation - - 764,000 940,000
 Building & Grounds Personnel Operating Dep A Operating Dep B

Square feet 1000 3000 12000 15000

Direct labor-hours 76000 92000
Number of employees 10 5 45 55
Departmental cost 54,000 200,000 650,000 800,000
Building & Grounds (54,000)
54000*(12000/30000) 21,600
54000*(15000/30000) 27,000
54000*(3000/30000) 5,400
Personnel (205,400)
205400*(45/100) 92,430
205400*(55/100) 112,970
Total Costs after allocation - - 764,030 939,970
Predetermined Overhead cost
764000 / 76000 10.05
940000 / 92000 10.22
Predetermined Overhead cost
764000 / 76000 10.05
940000 / 92000 10.22
 Operating Dep Operating Dep
Cafeteria Engineering
1 2
No. of employees 10 40 500 200
Departmental cost 69,375
Maintenance cost (69,375)
69,375 * (500 / 700) 49,554
69,375 * (200 / 700) 19,821
Engineering cost 95000
69,375 * (500 / 700) 67,857
69,375 * (200 / 700) 27,143

Building & Operating Dep Operating Dep

Personnel
Grounds A B
Square feet 1000 3000 12000 15000
Direct labor-hours 76000 92000
Number of employees 10 5 45 55
Departmental cost 54,000 200,000 650,000 800,000
Building & Grounds (54,000)
54000*(12000/27000) 24,000
54000*(15000/27000) 30,000
 Personnel (200,000)
200000*(45/100) 90,000
200000*(55/100) 110,000
Total Costs after allocation - - 764,000 940,000

Predetermined Overhead cost

764000 / 76000 10.05
940000 / 92000 10.22
 SERVICE DEPARTMENT OPERATING DEPARTMENTS
Building & Grounds Personnel Operating Dep A Operating Dep B
Square feet 1000 3000 12000 15000
Direct labor-hours 76000 92000
Number of employees 10 5 45 55
Departmental cost 54,000 200,000 650,000 800,000
Building & Grounds (54,000)
54000*(12000/30000) 21,600
54000*(15000/30000) 27,000
54000*(3000/30000) 5,400
Total cost after allocating Building & Grounds - 205,400 671,600 827,000
 Personnel (205,400)
205400*(45/100) 92,430
205400*(55/100) 112,970
Total Costs after allocation - - 764,030 939,970

Predetermined Overhead cost

764030 / 76000 10.05
939970 / 92000 10.22