1C3P LOGO INC. HAS TWO DATA SERVICES DEPARTMENTS (THE SYSTEMS DEPARTM...

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