PROBLEMSNote the following information concerning the direct costs of each of the following fourdepartments:1)Supplied by:HRPMHuman Resources$ 975,000A)B)C)D)Human ResourcesPlantMaintenance$1,300,000PlantMaintenance15%CuttingPolishing$7,685,000 $8,755,00015%Based on the above information, prepare the followingAllocate costs by the direct method.Cutting50%45%Polishing35%40%Allocate costs by the step-down method (Human Resources first)Allocate costs by the step-down method (Plant Maintenance first)Allocate costs by the reciprocal method

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

1) Note the following information concerning the direct costs of each of the following four departments: Human Resources $ 975,000 Supplied by: A) B) C) Human Resources Plant Maintenance $1,300,000 (bo CD a Plant Maintenance 15% Cutting $7,685,000 Cutting 50% 45% HR PM 15% Based on the above information, prepare the following Allocate costs by the direct method. Polishing $8,755,000 Polishing 35% 40% Allocate costs by the step-down method (Human Resources first) Allocate costs by the step-down method (Plant Maintenance first)

1) Note the following information concerning the direct costs of each of the following four departments: Human Resources $ 975,000 Supplied by: A) B) C) Human Resources Plant Maintenance $1,300,000 (bo CD a Plant Maintenance 15% Cutting $7,685,000 Cutting 50% 45% HR PM 15% Based on the above information, prepare the following Allocate costs by the direct method. Polishing $8,755,000 Polishing 35% 40% Allocate costs by the step-down method (Human Resources first) Allocate costs by the step-down method (Plant Maintenance first)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Blue-Pool Company is an electric utility which has two service departments, Accounting and Maintenance. It also has two operating departments, Generation and Transmission. Maintenance Department costs are allocated based on maintenance hours of service. Accounting Department costs are allocated based on accounting hours of service provided. Budgeting costs and other data for the following year are as follows: Accounting Maintenance Generation Transmission Budgeted costs R100 000 R200 000 R600 000 R400 000 Maintenance hours of service 600 7 200 4 800 Accounting hours of service 500 2 000 4 500 3 500 The step method is used to allocate service department costs, with the accounting department being allocated first. Calculate the amount of accounting department costs that needs to be allocated to the generation department. A. R42 860 B. R38 000 C. R57 143 D. R45…
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Staff hours Staff costs General operating costs Required: Eastside 25,000 $ 660,000 8,100 $ 99,000 Required A Required B Westside 6,250 $ 440,000 2,700 $ 198,000 a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 1,100,000 10,800 $ 297,000 $ 660,000 Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses revenue to allocate general operating costs. % of revenue
The graph below shows monthly data collected on facilities maintenance department costs and on the number of patient-days serviced over the past year. 50,000 45,000 Line of Best Fle 40,000 35,000 30,000 25, 000 20,000 15,000 10,000 5,000 1,000 2,000 3,00 4,000 5,000 6,000 # of Patient-Days Using 0 and 3,000 patient-days, the total cost at an activity level of 8,000 customer patient-days would be: O a. $91,000 O b. $66,860 O c. $63,360 O d. $55,000 Maintenance Department Costs
5) Hakan&Ahmet Manufacturing Company uses applied overhead rate for allocating its manufacturing overhead to its products. The following information is estimated for the upcoming year of 2024: BUDGETED COSTS AND ESTIMATED ACTIVITY LEVELS Budgeted MOH Budgeted Direct Materals Cost Budgeted Direct Labor Cost Estimated Direct Labor Hours Estimated Machine Hours AMOUNTS and HOURS $ 720,000 $ 600,000 $ 480,000 72,000 dlh 120,000 mh At the end of the first week of January 2024, the company completed only one job order. Actual costs and actual usage of dlh and mh for this unit were as follows: Job Order Direct Material Cost ($) 100 GRS-34 Direct Labor Direct Labor Cost ($) 150 Hours 15 Machine Hours 30 Q1) Calculate a predetermined manufacturing overhead rate (applied overhead rate) by using each of the cost drivers of "direct materials cost", "direct labor hours", "direct labor costs" and "machine hours". Q2) By using each of these rates, calculate the unit cost of this job order.
Activity-Based Costing Steampunk Corporation has the following predicted indirect costs and cost drivers for 2019 for the given activity cost pools: FabricationDepartment FinishingDepartment Cost Driver Maintenance $ 36,000 18,000 Machine hours Materials handling 54,000 27,000 Material moves Machine 126,000 9,000 Machine setups Inspections - 45,000 Inspection hours Total $ 216,000 $ 99,000 The following activity predictions were also made for the year: FabricationDepartment FinishingDepartment Machine hours 5,000 2,500 Material moves 1,500 750 Machine setups 350 25 Inspection hours - 500 It is assumed that the cost per unit of activity for a given activity does not vary between departments. Steampunk's president, Abner Punk, is trying to evaluate the company's product mix strategy regarding two of its product models, SW100 and SG150. The company has been using a company wide overhead rate based on machine hours but is considering…
Company 10, a local road building contractor, had budgeted indirect costs for 2023 of $600,000. Budgeted labour hours for the year were 12,500 costing $260,000 and budgeted machine hours were 14,000. The company marks-up the total cost of each job by 40% to determine selling price. The company has just completed a road repair for the local council. The direct costs were as follows: Materials: $32,100 Labour: 305 hours Machining: 75 hours What is the total selling price of this job assuming the company allocates overheads on: A labour hour basis? A machine hour basis? (1) (ii) A B C D (1) Labour hour basis $53,084 $74,318 $65,436 $20,496 (ii)Machine hour basis $41,659 $58,323 $49,441 $4,521
14) What is operating income using variable costing? A) $52,500 B) $78,750 C) $65,750
Factory rent of £20,000 and supervisor costs of £10,000 are to be apportioned to production cost centres (Assembly and Finishing). Using the information below state an appropriate amount in total to be apportioned to the Assembly department. Assembly Finishing Number of staff 60 40 Cost of machinery (£) 50,000 150,000 2.000 Floor area occupied (m2) 3,000 O A. £15,000 O B. £18,000 O C. £20,000 O D. £7,500
III. Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Estimated overhead Direct labor hours Direct labor cost Machine hours Direct materials Direct labor cost Direct labor hours: Welding $ 220,000 $ 4,500 90,000 5,000 Welding Assembly Finishing Number of machine hours: Welding Assembly Finishing Assembly $ 62,000 10,000 $ 150,000 1,000 Currently, overhead is applied on the basis of machine hours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with…
Rockport Corporation uses the cost formula Y- $4,800+ $0.40X for the maintenance cost, where X is machine-hours. The August budget is based on 9,000 hours of planned machine time. Maintenance cost expected to be incurred during August is: O $4,800 O $8,400 O $3,600 O $1,200
answer in text form please (without image)
The following information is available for the two production departments, machining and assembly, and one service department, the canteen: Machining Assembly Budgeted overheads £15,000 £20,000Number of staff 30 20Canteen £5,500 5After reapportionment of the service cost centre costs, what will be the overhead cost of the machining department cost centre?A. £3,300B. £17,750C. £18,000 D. £18,300