A company has three departments: A, B, and C. The company incurred $60,000 in general utilities expenses. The departmental sales for the year are as follows: Department A: $150,000 Department B: $225,000 Department C: $75,000 What amount of utility expense should be allocated to Department B?

A company has three departments: A, B, and C. The company incurred $60,000 in general utilities expenses. The departmental sales for the year are as follows: Department A: $150,000 Department B: $225,000 Department C: $75,000 What amount of utility expense should be allocated to Department B?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

See similar textbooks

Related questions

Q: How much was over or under applied overhead?

A: Explanation of Predetermined Overhead Rate: A predetermined overhead rate is a calculated rate…

Q: What is the desired profit for the year?

A: Step-by-Step SolutionIdentify the total assets and the desired rate of returnTotal assets =…

Q: How much Ron's taxable income?

A: Explanation of Gross Income:Gross income is the total income an individual earns before any…

Q: Please provide the accurate answer to this general accounting problem using valid techniques.

A: Step 1: Define Direct Labor Cost VarianceThe Direct Labor Cost Variance is the difference between…

Q: I am searching for the correct answer to this general accounting problem with proper accounting…

A: Step 1: Define Price-to-Earnings (PE) RatioThe Price-to-Earnings (PE) Ratio is a valuation metric…

Q: Provide correct solution and accounting

A: To calculate Total Asset Turnover, use the formula: Total Asset Turnover = Net Sales / Average Total…

Q: How much is hunt's owner equity?

A: Step 1: Definition of Owner's EquityOwner's equity is the residual interest in the assets of a…

Q: asset turnover ratio for 2023?

A: Step 1: Definition of Asset Turnover RatioThe Asset Turnover Ratio measures how efficiently a…

Q: A company began the year with total liabilities of $159,000 and stockholders' equity of $42,000.…

A: To calculate the total amount of assets at the end of the year, we use the accounting equation:…

Q: I am looking for a step-by-step explanation of this financial accounting problem with correct…

A: Concept of Operating Income:Operating income is the profit a company makes from its core business…

Q: Can you explain the steps for solving this General accounting question accurately?

A: Step 1: Define Plantwide Overhead RateA plantwide overhead rate is a single overhead rate applied to…

Q: What is its working capital ??

A: Working Capital = Current Assets - Current Liabilities Given the information:Current Assets =…

Q: Can you solve this financial accounting question with the appropriate financial analysis techniques?

A: Step 1: Define Book Value Per Share of Common StockBook value per share of common stock is the…

Q: Hello tutor provide correct solution

A: Step 1: Definition of High-Low MethodThe high-low method is used to separate mixed costs into fixed…

Q: what was carter's net income for the year?

A: Step 1: Definition of Net IncomeNet income is the total profit of a business after all revenues have…

Q: what is evergreen total stockholders equity ? general accounting

A: Step 1: Definition of Stockholders' EquityStockholders' equity, also known as shareholders' equity,…

Q: Hello tutor please help me this question

A: Step 1: Definition of Net Realizable Value (NRV)Net Realizable Value (NRV) is the estimated amount…

Q: calculate the total contribution margin, contribution margin per unit , and contribution margin…

A: Step 1: Definition of Contribution MarginContribution margin refers to the difference between sales…

Q: Please provide the correct answer to this general accounting problem using valid calculations.

A: Step 1: Define Total AssetsTotal assets on the balance sheet represent everything the company owns…

Q: Which account is not closed at the end of an accounting period? Consider typical accounts maintained…

A: In accounting, there are primarily five types of accounts: assets, liabilities, revenue, expenses…

Q: What is millstone's price-sales ratio?

A: To calculate Millstone's price-sales ratio, you will need the following information:Market…

Q: I want to correct answer

A: Step 1: Definition of Raw Materials Transferred to ProductionRaw materials transferred to production…

Q: increase in profits? accounting question

A: Step 1: Definition of Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL) is a…

Q: What is the ending total asset balance?

A: Step 1: DefinitionsConcept of Asset Turnover Ratio:Asset Turnover Ratio is a financial metric that…

Q: Define and differentiate between capital expenditure and revenue expenditure. Why is it important…

A: Capital Expenditure vs. Revenue ExpenditureDefinitionsCapital expenditure refers to funds spent by a…

Q: Need correct answer please accounting

A: Step 1: Definition of Operating Leverage Operating Leverage is a financial metric that assesses the…

Q: General accounting

A: Given Information:Projected Earnings per Share (EPS) next quarter: $4.80Technology sector…

Q: What is the net income of the firm?

A: Explanation of Gross Profit: Gross profit represents the difference between a company's sales…

Q: What is the overhead applied in COGS for job X5? Accounting question

A: Step 1: Definition of Applied OverheadApplied overhead is the portion of estimated manufacturing…

Q: Provide Answer

A: Step 1: Definition of Labor Variances in Standard CostingIn a standard costing system, labor…

Q: BOYEGA Corp. ended the year with an inventory of $812,000. During the year, the firm purchased…

A: Step 1: DefinitionsConcept of Inventory:Inventory refers to the goods a company holds for sale in…

Q: Please explain the solution to this general accounting problem with accurate principles.

A: Step 1: Define Long-Term DebtLong-Term Debt (LTD) refers to financial obligations that are due more…

Q: Please help me in this question.

A: Given:Sales = $216,000Direct material and direct labor= $108,000Fixed overhead = 75% of 20,000…

Q: What is the predetermined overhead rate it should use during the year?

A: Concept of Predetermined Overhead Rate:The predetermined overhead rate is an estimate used to apply…

Q: Delta Tech Inc. has the following: . Current assets: $8,900 • • • Net fixed assets: $34,100 Current…

A: Step 1: DefinitionsShareholders' EquityShareholders' equity, also known as owner's equity or net…

Q: Kindly help me with this General accounting questions not use chart gpt please fast given solution

A: To calculate the Free Cash Flow (FCF) for the company:1. Calculate Net Operating Profit After Taxes…

Q: Calculate the price- earnings ratio accounting question

A: Step 1: Definition of Price-Earnings (P/E) RatioThe Price-Earnings (P/E) Ratio is a financial metric…

Q: Suppose Columbia Sportswear Company had accounts receivable of $312,680,750 at January 1, 2018, and…

A: Explanation of Accounts Receivable: Accounts receivable represents money owed to a company by its…

Q: can you help in this question?

A: Hello student! A Current Ratio of 2.8 means that for every $1 of current liabilities there is $2.80…

Q: Solve My problem with accounting question

A: Step 1: Definition of Straight-Line DepreciationStraight-Line Depreciation is a method of allocating…

Q: What is its operating leverage?

A: Contribution Margin = Fixed Cost + Operating ProfitContribution Margin = 320,000+80,000Contribution…

Q: I need help with this general accounting question using the proper accounting approach.

A: Step 1: Definition of Bond Issuance at a PremiumWhen bonds are issued above face value, they are…

Q: I am trying to find the accurate solution to this general accounting problem with appropriate…

A: Step 1: Definition of Variable Costing (Ending Inventory)Under variable costing, only variable…

Q: Financial Accounting

A: Step 1: Definition of Net IncomeNet income is the amount of money a company has left after all its…

Q: King’s Park, Trinidad is owned and operated by a private company,Windy Sports Ltd. You work as the…

A: Windy Sports Step-by-Step Calculations YearRevenueOperating Expenses (60%)EBITD (Revenue -…

Q: provide correct answer accounting question

A: Step 1: Definition of Average Collection PeriodThe Average Collection Period, also known as Days…

Q: Can you show me the correct approach to solve this financial accounting problem using suitable…

A: Provided Data:Current Assets = $438,000Current Liabilities = $193,000Step 1: Key…

Q: How much was the equity?

A: Step 1: Definitions Concept of Assets:Assets are resources owned by a company that have economic…

Q: What is the cycle time for order?

A: Cycle time is the time it takes to manufacture one unit of production from start to finish. Vanguard…

Q: Provide correct answer

A: Explanation of Receivables Turnover Rate: Receivables turnover rate measures how efficiently a…

Question

hi expert please help me

A company has three departments: A, B, and C. The
company incurred $60,000 in general utilities expenses.
The departmental sales for the year are as follows:
Department A: $150,000
Department B: $225,000
Department C: $75,000
What amount of utility expense should be allocated to
Department B?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The amount allocated to department y is?
Income from operations for Division X is $300,000, total service department charges are $500,000, and operating expenses are $3,200,000. What are the revenues for Division X? a. $800,000 b. $3,500,000 c. $4,000,000 d. $3,200,000
Subject:- accounting
What are the revenue for division L?
Ans
A company has three production departments and two service departments, and for a period the departmental distribution summary has the following totals : $ Production Departments : P1-$800 ; P2–$700 and P3-$500 Service Departments :S1–$234 and S2–$300 2,000 534 2,543 The expenses of the service departments are charged out on a percentage basis as follows: P1 P2 P3 s1 S2 Service Department S1 20% 40% 30% 10% Service Department S2 40% 20% 20% 20% Prepare a statement showing the apportionment of two service departments expenses to Production Departments by Simultaneous Equation Method.
A retailer allocates $196,000 of total annual rent expense to its four departments in a two-story building: $118,000 is allocated to first floor departments and $78,000 to second floor departments. Each floor's rent is then allocated to departments based on square feet occupied. Department Square Feet Occupied 2,280 1,520 2,660 1,140 A 8 C D Allocate rent expense to each department. Square Feet First Floor Department A Department B Totals Second Floor Department C Department D Totals Square Feet Floor First First Second Second Percent of Total Percent of Total % % % Cost Allocated Cost Allocated
How much advertising expense should be allocated
Bank's Department Store has three departments: Men's, Women's, and Children's. The store incurred $38,000 of store rental costs during the current year. The departments identified the following cost drivers: Labor dollars Number of employees Square footage Number of sales transactions Men's $ 538,000 18 3,800 308,000 Women's $ 783,000 28 8,800 908,000 Using the most appropriate cost driver, how much rental cost should be allocated to the Women's Department? . Childr $248, 1, 98,
The Ski department reports sales of $625,000 and cost of goods sold of $437,500. Its expenses follow. Direct Expenses Indirect Expenses Service Department Expenses Salaries $118,000 Rent $16,100 Office $24,200 Depreciations 44,600
Use the information in the following table to compute each department's contribution to overhead (both in dollars and as a percent). (Round Contribution percent to 1 decimal place.) Sales Cost of goods sold Gross profit Total direct expenses Contribution to overhead Contribution percent (of sales) O Department A O Department B Department C Dept. A $ 57,000 35,910 21,090 5,820 Dept. B $207,000 107,640 99,360 44,200 Which department contributes the largest dollar amount to total overhead? Department A O Department B O Department C Dept. C $ 77,000 40,810 36,190 9,146 Which department contributes the highest percent (as a percent of sales) to total overhead?
Use the information in the following table to compute each department's contribution to overhead (both in dollars and as a percent). (Round Contribution percent to 1 decimal place.) Dept. A Dept. B Dept. C Sales Cost of goods sold Gross profit $ 55.000 $ 219,000 $ 85,000 113,880 105,120 45,050 39,950 34,650 20,350 4,380 Total direct expenses 38,320 9,366 Contribution to overhead Contribution percent (of sales) Which department contributes the largest dollar amount to total overhead?