The Sandal Factory Manufactures Synthetic Sandals for the Younger Market

question 29

Essay

The Sandal Factory manufactures synthetic sandals for the younger market.The company is interested in apportioning the following three costs to four departments.These costs are rent ($500?000),depreciation ($25?000)and insurance ($45?000).Rent is driven by floor space,depreciation by machine hours and insurance by value of equipment.Following is the floor space,machine hours and equipment values for the four departments (HR,Quality control,Machining and Assembly):
$\begin{array}{lrrrr}&\text { HR}&\text {Quality}& \text {Machining }& \text { Assembly}\\&&\text {Control}\\ \text { Floor space }(\mathrm{sq} \cdot \mathrm{m}) & 600 & 400 & 800 & 1600 \\\text { Machine hours } & 700 & 300 & 2300 & 1100 \\\text { Equipment values }& \$ 7100 & \$ 3100 & \$ 1200 & \$ 2000\end{array}$

Required:
A.How much of each overhead cost is allocated to the four departments?
B.What is the total overhead in each department?

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Definitions:

Coordinating Conjunction

A word that connects clauses, sentences, or words of equal syntactic importance, such as "and," "but," or "or."

Subordinating Conjunction

A word or phrase that introduces a dependent clause, connecting it to an independent clause, and indicating a relationship between the two, such as time, reason, or condition.

Punctuated Correctly

Marked with all necessary punctuation marks in accordance with the rules of grammar.

Probability Model

A mathematical representation of a random process, outlining the possible outcomes and their associated probabilities.