Cost Assignment 1

Support department cost allocation—direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department     Cost Driver Janitorial Department   Square footage to be serviced Cafeteria Department   Number of employees     JanitorialDepartment CafeteriaDepartment CuttingDepartment AssemblyDepartment Department costs $310,000        $169,000     $1,504,000      $680,000     Square feet 50        5,000         1,000      4,000     Number of employees 10        3     30      10     Allocate the support department costs to the production departments using the direct method.   CuttingDepartment   AssemblyDepartment

Support department cost allocation—direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department     Cost Driver Janitorial Department   Square footage to be serviced Cafeteria Department   Number of employees     JanitorialDepartment CafeteriaDepartment CuttingDepartment AssemblyDepartment Department costs $310,000        $169,000     $1,504,000      $680,000     Square feet 50        5,000         1,000      4,000     Number of employees 10        3     30      10     Allocate the support department costs to the production departments using the direct method.   CuttingDepartment   AssemblyDepartment Janitorial Department cost allocation $fill in the blank 1   $fill in the blank 2 Cafeteria Department cost allocation $fill in the blank 3   $fill in the blank 4

Support department cost allocation—direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department     Cost Driver Janitorial Department   Square footage to be serviced Cafeteria Department   Number of employees     JanitorialDepartment CafeteriaDepartment CuttingDepartment AssemblyDepartment Department costs $280,000        $190,000     $1,490,000      $670,000     Square feet 46        4,700         1,500      3,500     Number of employees 12        2     18      2     Allocate the support department costs to the production departments using the direct method.   CuttingDepartment   AssemblyDepartment Janitorial Department cost allocation       Cafeteria Department cost allocation

3 /9 90% Question 1: Support Department cost allocation Computer Horizons Ltd. manufactures computers. The company has two corporate support departments (legal and personnel) in supporting each other and two manufacturing departments, the Laptop department and the Workstation department. The overhead costs of support departments are allocated to the manufacturing departments. Legal hours are used to allocate the cost of legal department, and personnel hours are used to allocate the cost of personnel department. The budgeted overhead costs and cost allocation bases are given below: Support Departments Manufacturing Departments Legal Personnel Laptop Workstation Overhead Costs before any inter department cost allocations $9,055 $4,000 $240,000 $200,000 Support Work provided by Legal Department Legal hours 2 37 20 Support work provided by Personnel Department Personnel hours 40 30 200 160 Required: Report the total costs of the manufacturing departments (Laptop and Workstation) after the…

BB Home Insert A Page Layout Formulas Data Review View B C D E F SUPPORT 1 DEPARTMENTS OPERATING DEPARTMENTS Human Information Corporate Consumer 234 Resources Systems Sales Sales 3 Budgeted costs incurred before any interdepartment cost allocations $72,700 $234,400 $998,270 $489,860 Support work supplied by human 5 resources department 6 Budgeted number of employees Support work supplied by information 7 systems department 80 - 21 42 28 Budgeted processing time (in minutes) 320 - 1,920 1,600

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Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.   Support Departments Producing Departments   HumanResources GeneralFactory Fabricating Assembly Direct costs $170,000 $350,000 $114,800 $95,000 Normal activity:         Number of employees — 60 80 170 Square footage 1,000 — 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Valron Company uses the direct method of support department cost allocation. Required:

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Support department cost allocation-sequential method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet Number of employees 50 5,000 1,000 4,000 10 30 10 Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first. Cutting Assembly Department Department Janitorial Department Cafeteria Department

Activity Clerical support Facility services Client consultations Activity usage for each service follows. Activity Cost Driver Documents Billable hours Court dates Budgeted Cost Required 1 Required 2 $ 57,600 20,160 72,800 Activity Clerical support Facility services Client consultations Budgeted Activity Usage 360 documents 2,520 billable hours 28 court dates Activity Usage Litigation 210 920 20 Mediation 150 1,600 8 Required: 1. Compute an activity rate for each activity using activity-based costing. 2. Compute overhead cost per unit (case) for both litigation and mediation using activity-based Total 360 2,520 28 Complete this question by entering your answers in the tabs below. Compute an activity rate for each activity using activity-based costing. (Round "Activity rate" to 2 c Budgeted Cost Budgeted Activity Usage Activity Rate

Karen Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. Indirect Expense Cost Allocation Base Supervision Utilities $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Value of assets in use Insurance Total $168,000 Departmental data for the company's recent reporting period follow. Department Materials Employees Square Feet 66,500 9,500 95,000 19,000 Asset Values 58 $10,350 4,140 38,640 15,870 Personnel 8 Manufacturing Packaging 70 64 Total 200 190,000 $69,000 1. Use this information to allocate each of the three indirect expenses across the four departments. 2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use this information to allocate…

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Support department cost allocation-direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant detail Support Department Cost Driver Square footage to be serviced Janitorial Department Cafeteria Department Number of employees Janitorial Department $310,000 Cafeteria Department $169,000 5,000 3 Janitorial Department cost allocation. Cafeteria Department cost allocation Cutting Department $1,504,000 Department costs Square feet 50 1,000 Number of employees 10 30 Allocate the support department costs to the production departments using the direct method. Cutting Department Assembly Department $580,000 4,000 10 Assembly Department

PR 5-52 (Algo) Activity Cost Pools; Cost Drivers; Pool Rates (LO 5-1, 5-2, 5-3, 5-4, 5-5, 5-7) Skip to question   [The following information applies to the questions displayed below.] The controller for Tulsa Medical Supply Company has established the following activity cost pools and cost drivers. Activity Cost Pool Budgeted Overhead Cost Cost Driver Budgeted Level for Cost Driver Pool Rate Machine setups $ 450,000 Number of setups 150   $ 3,000 per setup Material handling 60,000 Weight of raw material 30,000 pound $ 2 per pound Hazardous waste control 50,000 Weight of hazardous chemicals used 5,000 pound $ 10 per pound Quality control 150,000 Number of inspections 2,000   $ 75 per inspection Other overhead costs 400,000 Machine hours 20,000   $ 20 per machine hour Total $ 1,110,000           An order for 1,000 boxes of medical-testing agent has the following production requirements. Machine setups 5 setups Raw material 12,000 pounds Hazardous materials…

ezto.mheducation.com Homework: Cost Management and Allocation Assignment Question 7- Homework: Cost Management and Allocation Assignment- Connect Homework: Cost Management and Allocation Assignm... i Saved Help Save & Exit Submit Check my work State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows. 4. points Administration Communications Facilities Deposits $8,320,000 $4,600,000 447, 000 Loans Direct costs $200,000 24,000 $290,000 31,000 $253,000 20,500 Employee hours Number of employees Square footage occupied Skipped 360,000 8. 14 6. 230 130 4,600 13,800 5,100 244, 100 203,300 The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number of employees; and Facilities, square…

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EX 4-20 Activity-based costing for a service company Obj. 6 Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: EXCEL TEMPLATE Activity Activity Rate $ 240 per day $ 215 per image $ 50 per physician order $ 80 per test $1,000 per operating room hour Room and meals Radiology Pharmacy Chemistry lab Operating room The activity usage information associated with the two patients is as follows: Abel Putin Cheryl Umit Number of days 6 days 4 days Number of images Number of physician orders 4 images 3 images 6 orders 2 orders Number of tests 5 tests 4 tests Number of operating room hours 8 hours 4 hours A. Determine the activity cost associated with each patient. Answer Why is the total activity cost different for the two patients? B.

Support department cost allocation-reciprocal services method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Janitorial Department $310,000 Janitorial Department cost allocation Cafeteria Department cost allocation Cafeteria Department $169,000 5,000 3 Assembly Department Department costs $680,000 Square feet 4,000 10 Number of employees Allocate the support department costs to the production departments using the reciprocal services method. 50 10 Cutting Department $1,504,000 1,000 30 Cutting Department Assembly Department

Direct Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number of employees Square footage Support Departments Producing Departments Human Resources $160,000 General Factory $360,000 Fabricating Assembly $114,200 $95,000 60 45 80 1,500 6,000 14,000 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Chekov Company uses the direct method of support department cost allocation. Required: 1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent. Proportion of Driver Used by Human Resources Human Resources General Factory General Factory Fabricating Assembly 2. Using the direct method, allocate the costs of the…

Q. 2 Índigo manufacturing has five activity cost pools and two products ( a budget tape vacuum and a deluxe tape vacuum). Information is presented below:

Support department cost allocation—reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table:   MaintenanceDepartment SecurityDepartment CuttingDepartment SewingDepartment Machine hours 800         2,000      7,200       10,800      Asset value $2,000         $1,670           $2,500      $5,500      Department cost $36,000         $16,000      $64,000      $82,000      Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method.   CuttingDepartment   SewingDepartment Production departmentsʼ total costs…

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Support department cost allocation—reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table:   MaintenanceDepartment SecurityDepartment CuttingDepartment SewingDepartment Machine hours 800         2,000      6,400       11,600      Asset value $2,000         $1,420           $1,500      $6,500      Department cost $36,720         $16,320      $64,000      $84,000      Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method.   CuttingDepartment   SewingDepartment Production departmentsʼ total costs…