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

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

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

See similar textbooks

Similar questions

The estimated departmental manufacturing for producing departmenta A and Band the estimated costs of service departments C, D, and E (befor any service department allocations) are: Producing Department Service Department P120,000 180,000 P40,000 B D 40,000 E 20,000 The interdependence of the departments is as follows: Services Provided by Department D E Producing A Producing B Service C Service D Service E 30% 40% 50% 40 30 20 20 30 Marketing General office 20 10 100% 100% 100% Compute the final amount of estimated overhead of Service E after reciprocal transfer costs have been calculated algebraically. After computing the total factory overhead of each producing department and what amount of Department E cost is assigned to Marketing Department?
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?
The following departmental data are for Alpha Company: Line Item Description Support Department Power Producing Departments Grinding Producing Departments Assembly Direct overhead costs $300,000 $250,000 $100,000 Expected activity: Kilowatt-hours 400,000 100,000 If calculated through the direct method, the support department costs assigned to the grinding department are: a. $240,000. b. $150,000. c. $350,000. d. $100,000.
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…
(Appendix 4B) Sequential Method of Support Department Cost Allocation Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates power and general factory costs to each operating division using the sequential method. General Factory is allocated first in the sequential method for the company. Support department cost allocations using the sequential method are based on the following data: Support Departments Operating Divisions Power General Factory Battery Small Motors Overhead costs $160,000 $430,000 $163,000 $84,600 Machine hours 2,000 2,000 7,000 1,000 Square footage 1,000 1,500 5,000 15,000 Direct labor hours 18,000 60,000 Required: 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places.) Allocation ratios for General Factory Power Battery Small Motors Allocation ratios for Power Battery Small Motors…
Service Department Cost Allocation Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 1 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $120,000 $144,000 $180,000 $196,000 Square feet of factory floor space 80,000 160,000 Number of factory workers 60 20 Planned direct labor hours for the year 40,000 60,000 Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do not round bases when calculating reallocations of service departments. Production 1 2 Identifiable and allocated overhead Reallocation of service departments: Dept. 1 Factory floor space Dept. 2 Number of factory workers Total manufacturing overhead What is the apparent overhead rate for each…
Equivalent Units: Weighted Average Method The following data are for four independent process- costing departments. Inputs are added continuously. B Beginning inventory Percent completion Units started Ending inventory Percent completion Department A Department B Department C Department A D 5,000 35% 25% 4,000 21,000 18,000 4,000 75% Equivalent Units с D 30% 44,000 65% 49,000 37,000 10,000 11,000 Compute the equivalent units of production for each of the preceding departments using the weighted average method. 25%
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…
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
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…
Subject: Cost AccountingPlease answer the questions given. Thank you!

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS