22 A company has the following data reflecting the activity of all the company'soperating divisions:Number of unitsNumber of batchesNumber of product lines600,000 units1,000 batches50 product linesUnit-level overhead cost poolBatch-level overhead cost poolProduct line overhead cost poolFacility support cost pool$1,800,0002,000,000500,0001,000,000One division has 100,000 units, 500 batches, and 10 product lines.How much overhead cost should be allocated to this division?○$1,000,000$1,100,000$1,300,000O $1,400,000

Step 1:Computation of the activity rates: Step 2:Computation of the overhead cost allocated to the…

Answered: 22 A company has the following data…

Principles of Accounting Volume 2

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Chapter6: Activity-based, Variable, And Absorption Costing

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Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
Sequential (Step) 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 General Factory Fabricating Assembly $150,000 $360,000 $120,900 $86,000 1,500 60 45 80 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. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion…
Extreme Manufacturing Company provides the following ABC costing information:ActivitiesTotal CostsActivity - cost driversAccount inquiry$390, 00013, 000 hoursAccount billing$ 275,0005, 000, 000 linesAccount verification accounts$130, 50060, 000 accountsCorrespondence letters $22, 0004, 000 lettersTotal costs$817,500 The above activities are used by Departments A and B (among other departments) as follows: Department ADepartment BAccount inquiry hours2, 500 hours4, 000 hoursAccount billing lines800, 000 lines650, 000 linesAccount verification accounts9, 000 accounts7, 000 accountsCorrespondence letters2, 000 letters2, 400 letters How much of correspondence costs will be assigned to Department A ? Question 12 Select one:A. $49, 500B. $11, 242C. $11,000D. $22,000
Financial Accounting
36 Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Costs Number of employees Square metres of space occupied Machine-hours Service Departments Equipment Administrative Janitorial Maintenance Prep Finishing Total $36,000 $256,100 $498,600 $950,500 $67,800 $92,000 80 60 240 600 300 1,280 300 1,200 1,000 2,000 7,000 11,500 26,000 54,000 80,000 The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours). Departmental costs before allocations Allocations: Required: Using the step-down method, allocate the service department costs to the operating departments. (Negative amounts should be indicated by a minus sign.) Administrative Janitorial Maintenance Total costs after allocation $ Operating Departments Service Departments Administrative Janitorial…
6 Diamond Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead $340,000 Selling and administrative expenses 250,000 Total $590,000 Distribution of Resource Consumption: Activity Cost Pools Order Size Customer Support Other Total Manufacturing overhead 25% 50% 25% 100% Selling and administrative expenses 60% 30% 10% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool? Select one: a. $150,000 b. $360,000 c. $255,000 d. $235,000
The following data are for four independent process-costing departments. Inputs are added continuously. A B C D Beginning inventory 5,000 4,000 — 45,000 Percent completion 30% 75% — 60% Units started 24,000 21,000 49,000 35,000 Ending inventory 4,000 — 9,000 12,000 Percent completion 20% — 30% 20% Required: Compute the equivalent units of production for each of the four departments using the FIFO method Department A ? Department B? Department C? Department D ?
Sequential (Step) Method of Support Department Cost Allocation Chekov 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 $165,000 $380,000 $114,200 $90,000 Normal activity: Number of employees — 40 70 150 Square footage 1,800 — 5,500 13,200 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. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded…
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Employees Materials 40 60,000 $ 9,750 Personnel 8 7,500 1,300 Manufacturing Packaging 64 67,500 33,800 48 15,000 20,150 Total 160 150,000 $ 65,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost $ 83,000 Number of employees Allocation Base 55,000 Square feet occupied 25,000 Asset values $ 163,000 Allocate each of the three indirect expenses to the four departments.
Equivalent Units: Weighted Average Method The following data are for four independent process-costing departments. Inputs are added continuously. A B C D Beginning inventory 8,000 6,000 — 46,000 Percent completion 40% 80% — 60% Units started 25,000 19,000 53,000 36,000 Ending inventory 7,000 — 8,000 11,000 Percent completion 30% — 25% 20% Required: Compute the equivalent units of production for each of the preceding departments using the weighted average method. Equivalent Units Department A fill in the blank 1 Department B fill in the blank 2 Department C fill in the blank 3 Department D fill in the blank 4
1
Yekka Corporation has two producing department and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of services costs used by various departments are as follows: Cost Center Direct Costs Proportion of services used by: S1 S2 P1 P2 P1 90,000 P2 60,000 S1 20,000 - .80 .1 .1 S2 32,000 .20 - .50 .30 In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2. P1 P2 Machine hours 50,000 40,000 Direct labor hours 40,000 20,000 Requirements: Allocate the service department costs to operating departments and compute the factory…

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