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- Cranshaw Business Services (CBS) operates an information technology (IT) consulting firm out of two offices: Detroit and Los Angeles. Corporate services, such as legal, finance, and personnel, are centralized at the main office and the costs of these services are allocated to the two offices for the purposes of profitability assessment. The Detroit office is the original unit of the company and is well established, having long-time clients from the automotive and other manufacturing industries. The Los Angeles office is new with a smaller, much more varied, clientele. The costs of personnel services at CBS are currently allocated on the basis of the number of employees in each office. The annual costs of the personnel department total $550,000. Data for the fiscal year just ended show the following: Number of employees Number of new hires Number of employees departing Allocation based on Employees Transitions Detroit 340 Variable Cost $ 120,000 120,000 9 1 Los Angeles 160 Exercise 9-32…E22-11 UrLink Company is a newly formed company specializing in high-speed Internet Prepare and discuss a service for home and business. The owner, Lenny Kirkland, had divided the company into responsibility report. two segments: Home Internet Service and Business Internet Service. Each segment is run by its own supervisor, while basic selling and administrative services are shared by both segments. Lenny has asked you to help him create a performance reporting system that will allow him to measure each segment's performance in terms of its profitability. To that end, the following information has been collected on the Home Internet Service segment for the first quarter of 2017. (LO 2, 3), AP 04 22 Budgetary Control and Responsibility Accounting Budget $25,000 Actual Service revenue Allocated portion of: Building depreciation Advertising Billing Property taxes Material and supplies Supervisory salaries Insurance Wages Gas and oil $26,200 11,000 5,000 3,500 1,200 1,600 9,000 4,000 3,000…Q.3.2 Puppy Manufacturers is a dog clothing company with four departments - small clothing, large clothing, administrative services and facilities services. The first two departments are the primary production departments and the latter two departments exist to provide services to the production departments. Top management has decided that, for internal reporting purposes, the cost of service. department operations should be reassigned to the production departments. Administrative service costs are reassigned on the basis of the number of employees and facilities services costs are reassigned based on the amount of floor metreage occupied. The service departments provide services to both production departments as well as each other. Data pertaining to the reassignments for February 2019 are as follows: Department Direct Nr of Square metreage departmental costs employees occupied Small clothing (SC) R350 000 15 175 Large clothing (LC) R300 000 10 125 Administrative R100 000 4 25…
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- Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served by three operating departments, which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments are supported by two departments: information technology and operations. The support provided by information technology and operations to the other departments is shown below. Information technology Operations Support Departments Operating Departments Information Technology 100% Operations 20% Clains Processing 20% Administration 40% Sales 20% 10 50 30 The total costs incurred in the five departments are: Information technology Operations claims processing Administration Sales Total costs $ 578,000 1,780,000 290,000 630,000 650,000 $ 3,928,000 Required: Determine the total costs in each of the three operating departments, after departmental allocations, using (a) the direct method, (b) the…N4Required information [The following information applies to the questions displayed below.] Cranshaw Business Services (CBS) operates an information technology (IT) consulting firm out of two offices: Detroit and Los Angeles. Corporate services, such as legal, finance, and personnel, are centralized at the main office and the costs of these services are allocated to the two offices for the purposes of profitability assessment. The Detroit office is the original unit of the company and is well established, having long-time clients from the automotive and other manufacturing industries. The Los Angeles office is new with a smaller, much more varied, clientele. The costs of personnel services at CBS are currently allocated on the basis of the number of employees in each office. The annual costs of the personnel department total $510,000. Data for the fiscal year just ended show the following: Number of employees Number of new hires. Number of employees departing Allocation based on…
- Spiedino Company sells its products to both residential and commercial customers in eight sales territories. In which of the following ways could Spiedino be segmented? by product and then further segmented by type of customer. by type of customer and then further segmented by sales territory. by sales territory and then further segmented by product line. all of the above.IdentificationE Essay Tips: How to Paraphrase a * PlayStation 5 Console - Walmart x aystation 5-antonline.co x /7355/quizzes/38887/take O works to achieve goal congruence O supports the use of expert knowledge 1 pts Question 3 The performance evaluation system should provide incentives to segment managers for coordinating the activities of the subunits and directing them toward the overall company goals. Which of the following performance measurement goals has been described by this statement? O motivating segment managers O promoting goal congruence O providing feedback O benchmarking Question 4 Uniox, Inc. intends to increase its profits by 50% in the next fiscal year. Which of the following is most likely be a lag indicator in Uniox's performance renort?
