ABC Company has two support departments, HR and IS, and two operating departments, Production and Sales. HR department costs are allocated using number of employees, and IS department costs are allocated using Labor hours. For July 2019, the following information is given: Cost Before Allocation Number of Employees Labor Hours HR IS $90,000 $60,000 2,000 Answer: 6,000 Production $360,000 3,000 15,000 Sales $520,000 5,000 9,000 Total $1,030,000 10,000 30,000 Using the Direct method, What IS department cost will be allocated to the Sales departments?

ABC Company has two support departments, HR and IS, and two operating departments, Production and Sales. HR department costs are allocated using number of employees, and IS department costs are allocated using Labor hours. For July 2019, the following information is given: Cost Before Allocation Number of Employees Labor Hours HR IS $90,000 $60,000 2,000 Answer: 6,000 Production $360,000 3,000 15,000 Sales $520,000 5,000 9,000 Total $1,030,000 10,000 30,000 Using the Direct method, What IS department cost will be allocated to the Sales departments?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How do I determine the cost of one unit each of SW100 and SG150, assuming a company wide overhead rate is used based on total machine hours? Round rate to two decimal places.
5) Hakan&Ahmet Manufacturing Company uses applied overhead rate for allocating its manufacturing overhead to its products. The following information is estimated for the upcoming year of 2024: BUDGETED COSTS AND ESTIMATED ACTIVITY LEVELS Budgeted MOH Budgeted Direct Materals Cost Budgeted Direct Labor Cost Estimated Direct Labor Hours Estimated Machine Hours AMOUNTS and HOURS $ 720,000 $ 600,000 $ 480,000 72,000 dlh 120,000 mh At the end of the first week of January 2024, the company completed only one job order. Actual costs and actual usage of dlh and mh for this unit were as follows: Job Order Direct Material Cost ($) 100 GRS-34 Direct Labor Direct Labor Cost ($) 150 Hours 15 Machine Hours 30 Q1) Calculate a predetermined manufacturing overhead rate (applied overhead rate) by using each of the cost drivers of "direct materials cost", "direct labor hours", "direct labor costs" and "machine hours". Q2) By using each of these rates, calculate the unit cost of this job order.
s
During 2022, Carla Vista Company incurred the following direct labor costs: January $19,200 and February $28,800. Carla Vista uses a predetermined overhead rate of 120% of direct labor cost. Estimated-overhead for the 2 months, respectively, totaled $18,720 and $34,272. Actual overhead for the 2 months, respectively, totaled $24,000 and $32,160. Calculate overhead applied. January February $ Determine if overhead is over- or underapplied for each of the two months and the respective amounts. January $ February I
Vinubhai
For 2020, Roy manufacturing used job costing. The company uses machine-hours as the overhead cost-allocation base. The records show the following information: Estimated Actual Manufacturing overhead costs £800,000 £840,000 Machine-hours 50,000 60,000 The budgeted manufacturing overhead rate for 2020 is ? a. £16 per machine-hour b. £14 per machine-hour c. £16.8 per machine-hour d. £13.3 per machine-hour
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 72,000 0.70 0.10 0.20 S2 $ 157,000 0.20 0.30 0.50 P1 $ 214,000 P2 $ 179,000 Under the step method of allocation, the total amount of service costs allocated to producing departments would be: Multiple Choice $174,000. $178,600. $74,000. $229,000.