1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.2 Of the total insurance, 66% relates to the Factory Plant & Equipment & 33% relates to general &administrative costs.3 The property taxes should be shared: 75% manufacturing & 25% general & administrative costs.Required:i) Calculate the raw material used in production by Unique School Supplies & Uniforms.ii) What is the total factory overhead costs incurred by Unique School Supplies & Uniforms during theperiod?iii) Determine the prime cost & conversion cost of the knapsacks manufactured.iv) Prepare a schedule of cost of goods manufactured for the year ended June 30, 2024, clearly showing totalmanufacturing cost & total manufacturing costs to account for.v) What is the selling price per knapsack if Unique School Supplies & Uniforms manufactured 925knapsacks for the Debe High School and uses a mark-up of 25% on cost?vi) How does the format of the income statement for a manufacturing concern differ from the income statementof a merchandising business?

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Answered: 1 Of the total utilities, 80% relates…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 3BE

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2. Assume that Kizzle's management allocates Maintenance costs based on the number of service calls. Further assume that in a given period, the Janitorial, Mixing, and Cooking activities incur 16, 40, and 24 service calls, respectively, and that the Janitorial and Maintenance costs of that period are $3,000 and $4,200, respectively. Determine the total costs allocated from each support activity to the other three activities using the reciprocal services method. Malntenance cost allocation: Janitorial: Mixing: $4 Cooking: Janitorial cost allocation: Maintenance: Mixing: Cooking: 3. The company is considering changing from the reciprocal service method to a simpler method. Why should the company continue with the reciprocal service method? a. It is complex, but more accurate. b. It can be practiced if the company has sufficient resources and capacity. C. The simpler cost allocation methods are less accurate. d. All the above.
s
! Required information Sunrise Accounting provides basic tax services and "rent-a-controller" accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for each pool, and the expected use for each pool. Activity Transportation costs Electronic processing Office support Transportation costs Electronic processing Office support Total Overhead $ Total Activity Cost $50,000 Mileage 75,000 Processing hours 20,000 $ Cost Driver Using activity proportions, determine the amount of overhead assigned to Controller Services. (Do not round intermediate calculations.) 25 75 12 112 Administrative hours Expected Tax Services Usage 5,000 miles 20,000 hours 3,500 hours Expected Controller Services Usage 35,000 miles 30,000 hours 1,500 hours
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports toshareholders, creditors, and the government. The company has provided the following data:Year 1 Year 2 Year 3Inventories:Beginning (units) .................................. 200 170 180Ending (units) ....................................... 170 180 220Variable costing net operating income .... $1,080,400 $1,032,400 $996,400The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.Required:1. Determine each year’s absorption costing net operating income. Present your answer in the form of areconciliation report as shown in Exhibit 5A–4.2. In Year 4, the company’s variable costing net operating income was $984,400 and its absorption costingnet operating income was $1,012,400. Did inventories increase or decrease during Year 4? How muchfixed…
Using the step method to allocate the service center costs, what is the total cost of programming and classes?
3
The Vest School of Vocational Technology has organized the school training programs into three departments. Each department provides training in a different area as follows: nursing assistant, dental hygiene, and office technology. The school's owner, Candice Vest, wants to know how much it cost to operate each of the three departments. To accumulate the total cost for each department, the accountant has identified several indirect costs that must be allocated to each. These costs are $10,080 of telephone expense, $2,016 of supplies expense, $720,000 of office rent, $144,000 of janitorial services, and $150,000 of salary paid to the dean of students. To provide a reasonably accurate allocation of costs, the accountant has identified several possible cost drivers. These drivers and their association with each department follow. Cost Driver Department 1 Department 2 Department 3 Number of telephone 28 16 19 Number of faculty members 20 16 12 Square footage of office space 28,000 16,800…
Required information Sunrise Accounting provides basic tax services and "rent-a-controller" accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for each pool, and the expected use for each pool. Activity Transportation costs Electronic processing office support Activity Transportation costs Electronic processing Office support Total overhead assigned Total Activity Cost Cost Driver $50,000 Mileage $ 75,000 Processing hours $ 20,000 Administrative hours. Required: Barry Gold, a tax client of Sunrise Accounting, requires 20 miles of transportation, 50 hours of processing time, and 3 hours of office support, determine the amount of overhead assigned to Barry Gold. Note: Round your intermediate calculations to 2 decimal places and your final answers to the nearest dollar amount. Allocated Overhead $ Expected Tax Services Usage 5,000 miles 20,000 hours 3,500 hours Expected Controller Services Usage 35,000 miles 30,000 hours 1,500…
Just question 2.
Assign each of the following expenses to either the machine cost pool or the factory cost pool: A. property taxes B. heat and air-conditioning C. electricity, machines D. plant depreciation E. electricity, plant F. machine maintenance wages
Support Department Cost Allocation-Reciprocal Services Method Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security Department are allocated based on asset value. Relevant department information is provided in the following table: Square feet Asset value Janitorial Department Security Department 650 $140 $1,900 3,600 $160 $1,300 Molding Department 3,600 $860 Department cost $10,900 Using the reciprocal services method of support department cost allocation, determine: Assembly Department 1,800 $1,000 $12,100 a. The percentage of Janitorial costs that should be allocated to the Security Department. % b. The percentage of Security costs that should be allocated to the Janitorial Department. %
Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory Indicate whether each period cost is a selling expense or an administrative expense. Costs a. Annual bonus paid to the chief financial officer of the company b. Annual fee to a celebrity to promote the aircraft c. Cost of electronic guidance system installed in the airplane cockpit d. Cost of the flight data recorder (the black box) for the airplane e. Cost of normal scrap from production of the airplane body f. Cost of small replicas of the airplane used to promote and market the airplane g. Cost of paving the headquarters employee parking lot h. Decals for cockpit door, the cost of which is immaterial to the cost of the final product 1. Depreciation on factory equipment j. Hourly wages for janitorial staff for the factory k. Hydraulic pumps used in the airplane's flight control system 1. Instrument panel installed in the…

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