223. CSO: 1C3d LOS: 1C3p
Logo Inc. has two data services departments (the Systems Department and the Facilities
Department) that provide support to the company’s three production departments
(Machining Department, Assembly Department, and Finishing Department). The
overhead costs of the Systems Department are allocated to other departments on the basis
of computer usage hours. The overhead costs of the Facilities Department are allocated
based on square feet occupied (in thousands). Other information pertaining to Logo is as
follows.
Computer Square Feet
Department Overhead Usage Hours Occupied
Systems $200,000 300 1,000
Facilities 100,000 900 600
Machining 400,000 3,600 2,000
Assembly 550,000 1,800 3,000
Finishing 620,000 2,700 5,000
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