Fact pattern: Gemini Inc., has two service 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
$ 265,000
88
1,600
Facilities
53,000
264
960
Machining
530,000
1,056
3,200
Assembly
728,750
400
Finishing
821,500
540
1,500
Total
2,348
8,210
Logo employs the direct method of allocating service department costs. The overhead of the Facilities Department would
be allocated by dividing the overhead amount by
Answer:
How much of the Systems overhead would the Assembly Department receive?
Answer: