3 Required information [The following information applies to the questions displayed below.] Use the following information: P1 Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Total P2 Service Department 2's Costs Cost $ 121,000 53,000 435,000 306,000 $915,000 3/8 x 5/8 x Percentage Service Provided to $1 0% What percentage of S2's costs is allocated to P1 and to P2 under the direct method? (Round your answer to the nearest fraction.) 20 S2 P1 20% 30% 0 20 P2 50% 60

3 Required information [The following information applies to the questions displayed below.] Use the following information: P1 Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Total P2 Service Department 2's Costs Cost $ 121,000 53,000 435,000 306,000 $915,000 3/8 x 5/8 x Percentage Service Provided to $1 0% What percentage of S2's costs is allocated to P1 and to P2 under the direct method? (Round your answer to the nearest fraction.) 20 S2 P1 20% 30% 0 20 P2 50% 60

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1m 2 A $ Budgeted overhead costs before any 3 interdepartment cost allocations Support work supplied by AS (budgeted head count) 4 Support work supplied by IS 5 (budgeted computer time) B AS SUPPORT 0 C 10% IS D 20% OPERATING GOVT 600,000 $1,200,000 $8,725,000 $ 12,540,000 $23,065,000 48% E 36% CORP 32% Total 54% 100% 100%
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P1 P2 Department Service 1 (51) Service 2 (52) Production 1 (P1) Production 2 (P2) Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Cost $ 46,000 36,000 260,000 310,000 Total Cost Allocated CARIN Percentage Service Provided to 25 . $2 20% 40% 40% Do 30 What is the amount of service department cost allocated to P1 and P2 using the direct method? Saved
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3-32 Drop a division relevant cost Johnny's Bar and Restaurant (JBR) offers three areas to its cus tomers: bar, restaurant, and games. Johnny is concerned about the following division income statement recently prepared by his accountant: Revenue. Variable costs. Contribution margin Fixed cost.. Division contribution. Revenue Variable costs RESTAURANT $220,000 80,000 Contribution margin Avoidable fixed cost $140,000 120,000 $ 20,000 Division contribution. Fixed cost allocated Division contribution. RESTAURANT $220,000 80,000 BAR $180,000 60,000 Johnny feels that these results confirm his intuition that the games area should be closed and the restaurant and bar areas expanded. $140,000 100,000 $120,000 70,000 $ 50,000 Required (a) Based on this information, would you recommend that Johnny close the games area? (b) Suppose now that the fixed costs in the above exhibit are comprised of two components costs that can be eliminated if each area is closed and ongoing costs that can only be…
-/1 Question 12 View Policies Current Attempt in Progress Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Thomsen has identified an activity cost pool with allocated overhead of $1500000 for which the cost driver is machine setups. How much overhead is assigned to each product? Fire Wind Earth $843750 $281250 $375000 $234375 $703125 $312500 $500000 $500000 $500000 $281250 $500000 $718750