Tasman Products, Limited, of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine- hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries and other "Budgeted at $18 per machine-hour. Budget $ 275,400 $ 195,000 Actual $ 352,020 $ 209,500 Data for the Forming and Assembly Departments follow: Percentage of Peak- Period Canacitu Machine-Hours

Tasman Products, Limited, of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine- hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries and other "Budgeted at $18 per machine-hour. Budget $ 275,400 $ 195,000 Actual $ 352,020 $ 209,500 Data for the Forming and Assembly Departments follow: Percentage of Peak- Period Canacitu Machine-Hours

Name: Tasman Products, Limited, of Australia has a Maintenance Department t
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Tasman Products, Limited, of Australia has a Maintenance Department that services the equipment in the company's FormingDepartment and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-ho

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

Tasman Products, Limited, of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine- hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries and other "Budgeted at $20 per machine-hour. Data for the Forming and Assembly Departments follow: Forming Department Assembly Department Total Budget $ 312,000 $ 206,000 Percentage of Peak- Period Capacity Required 73% 27% 100% Actual $ 399,600 $ 221,600 Machine-Hours Budget 10,400 5,200 15,600 Actual 12,400 4,200 16,600 The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance Department cost should be charged to the Forming…
Tasman Products, Limited, of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 355,200* $ 455,760 Fixed costs for salaries and other $ 216,000 $ 232,600 *Budgeted at $24 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak-Period Capacity Required Machine-Hours Budget Actual Forming Department 63% 9,800 11,800 Assembly Department 37% 5,000 4,000 Total 100% 14,800 15,800 The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance…
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 279,300 * $ 357,090 Fixed costs for salaries and other $ 195,000 $ 209,500 *Budgeted at $19 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage ofPeak-PeriodCapacity Required Machine-Hours Budget Actual Forming Department 70% 9,500 11,500 Assembly Department 30% 5,200 4,200 Total 100% 14,700 15,700 The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance…
Tasman Products, Limited, of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine- hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 349,600* $ 448,480 $ 210,600 Fixed costs for salaries and other $ 196,000 *Budgeted at $23 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak- Period Capacity Required 67% Actual Forming Department 10,200 12, 200 Assembly Department 33% 5,000 4,000 Total 100% 15,200 16,200 The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance Department cost should be charged to the Forming Department and to the…
Tasman Products, Limited, of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 96,000* $ 110,000 Fixed costs for salaries and other $ 150,000 $ 153,000 *Budgeted at $0.40 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak-Period Capacity Required Machine-Hours Budget Actual Forming Department 70% 160,000 190,000 Assembly Department 30% 80,000 70,000 Total 100% 240,000 260,000 The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: Using the above data, describe…
Service Department Charges Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Data for the Forming and Assembly Departments follow: The level of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: Management would like data to assist in comparing actual performance to planned performance in the Maintenance Department and in the other departments. 1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? 2. How much, if any, of the actual Maintenance Department costs for the year should be treated as a spending…
Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries and other Budget $ 379,200* $ 213,000 Actual $ 486,960 $ 229,300 *Budgeted at $24 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak- Period Capacity Machine-Hours Required Budget Actual Forming Department Assembly Department 70% 10,400 12,400 Total 30% 100% 5,400 4,400 15,800 16,800 The amount of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? 2. How much, if any, of the Maintenance Department's actual costs should be treated as a spending variance and not charged to the…
Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries and other Budget $ 261,000* Actual $ 215,000 $ 333,300 $ 231,500 *Budgeted at $18 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak- Forming Department Assembly Department Total Machine-Hours Period Capacity Required Budget Actual 74% 9,700 11,700 26% 100% 4,800 3,800 14,500 15,500 The amount of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? 2. How much, if any, of the Maintenance Department's actual costs should be treated as a spending variance and not charged to the…
Tasman Products has a Maintenance Department that services equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 341,000* $ 437,300 Fixed costs for salaries and other $ 219,000 $ 235,900 *Budgeted at $22 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak-Period Capacity Required Machine-Hours Budget Actual Forming Department 64% 10,100 12,100 Assembly Department 36% 5,400 4,400 Total 100% 15,500 16,500 The amount of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? How much, if any, of the Maintenance Department’s actual costs should be treated as a spending…
The controller of Ferrence Company estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: The total materials handling cost for the year is expected to be $16,486.40. If the materials handling cost is allocated on the basis of material moves, how much of the total materials handling cost should be allocated to the specialty windows? (Round off your answer to the nearest whole dollar.) Question 12 options: $3,266 $9,274 $8,243 $6,595
Shilongo Ltd uses costing to attribute costs to individual products and services provided to its customers. It has begun the preparation of its fixed production cost budget for the forthcoming period. The company three production departments Machining, Assembly and Finishing; and two service departments Stores and Maintenance. The following costs have been produced: Machining Assembly Finishing Stores Maintenance 2,500 1,500 1,000 Overhead cost $ 6,000 800 The number of machine and labor hours budgeted for the forthcoming period is budgeted as follows:- Machining Assembly Finishing Machine hours 500 40 50 Labor hours 100 300 200 Overheads are absorbed in Assembly and Finishing departments on a Labor hour basis; and in Machining departments they are absorbed on a machine hour basis. It has been estimated that service departments usage is as follows: Machining Assembly Finishing Stores Maintenance Maintenance 55% 20% 20% 5% - Stores 40% 30% 20% 10% Required: b) Calculate the overhead…
Shilongo Ltd uses costing to attribute costs to individual products and services provided to its customers. It has begun the preparation of its fixed production cost budget for the forthcoming period. The company three production departments Machining, Assembly and Finishing; and two service departments Stores and Maintenance. The following costs have been produced: Machining Assembly Finishing Stores Maintenance 2,500 1,500 1,000 Overhead cost $ 6,000 800 The number of machine and labor hours budgeted for the forthcoming period is budgeted as follows:- Machining Assembly Finishing Machine hours 500 40 50 Labor hours 100 300 200 Overheads are absorbed in Assembly and Finishing departments on a Labor hour basis; and in Machining departments they are absorbed on a machine hour basis. It has been estimated that service departments usage is as follows: Machining Assembly Finishing Stores Maintenance Maintenance 55% 20% 20% 5% - Stores 40% 30% 20% 10% Required: c) Prepare a quotation for…