A summary of the usage of the service department services by other servicedepartments as well as by the two producing departments is as follows:EquipmentBuildingProduction Dept.Service Cost Center Supervision Maintenance Occupancy Dept.1SupervisionEquipment maint.Building occunpany 10%Direct costs in the various departments are as follows:Dept. 245%10%5%40%45%35%0.55%10%045%DepartmentSupervisionEquipment maintenanceBuilding occupancyProduction Dept. No. IProduction Dept. No. 2Direct CostP 35,00030,00090,000350,000450,000LabelSIS2S3P1P2 d.22.If the step method of allocation is used, how much would be allocated fromsupervision to production department No. 1a. P14.000b. P16.471c. P17,600d. P18,526

Overhead: It is the indirect cost incurred in addition to the direct costs for manufacture of…

A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Service Cost Center Supervision Maintenance Occupancy Dept.I Supervision Equipment maint. Building occunpany 10% Production Dept. Dept. 2 45% 10% 5% 40% 45% 55% 45% 10% 35% Direct costs in the various departments are as follows: Direct Cost P 35,000 30,000 90,000 350,000 450,000 Department Supervision Equipment maintenance Building occupancy Production Dept. No. I Production Dept. No. 2 Label SI S2 S3 P1 P2

A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Service Cost Center Supervision Maintenance Occupancy Dept.I Supervision Equipment maint. Building occunpany 10% Production Dept. Dept. 2 45% 10% 5% 40% 45% 55% 45% 10% 35% Direct costs in the various departments are as follows: Direct Cost P 35,000 30,000 90,000 350,000 450,000 Department Supervision Equipment maintenance Building occupancy Production Dept. No. I Production Dept. No. 2 Label SI S2 S3 P1 P2

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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Original costs Proportion of Administrative hours used Proportion of Information Systems hours used Proportion of Maintenance hours used (a) Total costs Administrative Institutional $77,000 0.20 Operating Segments 0.10 Support Departments Information Systems Maintenance $110,600 $62,000 0.10 Retail 0.10 0.10 0.10 Operating Segments Institutional Retail $649,000 $351,000 0.45 0.40 Determine the total costs that each operating segment would be accountable for if support costs are allocated using the direct method. (Round interme 0.30 0.35 0.30 0.50
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 26 30,000 $ 9,300 Personnel 13 12,000 2,480 Manufacturing Packaging 52 66,000 37,820 39 12,000 12,400 Total 130 120,000 $ 62,000 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 $ 82,700 Number of employees Allocation Base 52,000 Square feet occupied 23,500 Asset values $ 158,200 Allocate each of the three indirect expenses to the four departments.
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Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: Operating Department Service Department Physical General Sales Management $ 33,384 $ 68,070 Plant After-Sales $ 232,830 Departmental costs Employee time Space occupied $ 292,500 33,000 6,000 5,000 40,000 10,000 5,000 40,000 28,000 General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to: Multiple Choice $321,410 $332,888 $335,534 $335,670
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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 Human Resources General Factory Direct costs Allocate: General Factory Support Departments Human Resources Human Resources Total after allocation $150,000 1,500 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. Human…
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