ABC Company is exploring ways to allocate the cost of service departments such as Quality Control and Maintenance to theproduction department such as Machining and Assembly. The controller of the company has provided the following information:QualityMaintenance MachiningAssemblyTotalControlBudgetedoverhead costsP350,000P200,000P400,000P300,000P1,250,000beforeallocationBudgeted50,000 hours50,000 hoursmachine hoursBudgeteddirect labor25,000 hours 25.000 hourShoursBudgetedhours of7,000 hours21.000 hours 7,000 hours35,000 hoursservice ofquality controlBudgetedjo Sinoų10,000 hours18.000 hours 12,000 hours 40,000 hoursservice ofUnder the step down method of allocating service department costs from quality control to maintenance, what is the total servicecost allocated to the assembly department? ABC Company is exploring ways to allocate the cost of service departments such as Quality Control and Maintenance to theproduction department such as Machining and Assembly. The controller of the company has provided the following information:QualityMaintenance MachiningAssemblyTotalControlBudgetedoverhead costsP350,000P200,000P400,000P300,000P1,250,000beforeallocationBudgetedmachine hours50,000 hours50.000 hoursBudgeteddirect labor25,000 hours 25.000 hour'shoursBudgetedhours ofservice of7.000 hours21,000 hours 7,000 hours35.000 hoursquality controlBudgetedhours of10.000 hours18,000 hours 12,000 hours 40,000 noursmaintenanceUnder the step down method of allocating service department costs from quality control to maintenance. what is the total servicecost allocated to the machining department?

Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Answered: ABC Company is exploring ways to…

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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Activity Rates and Product Costs using Activity-Based Costing Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Activity BudgetedActivity Cost Activity Base Casting $560,000 Machine hours Assembly 75,000 Direct labor hours Inspecting 30,000 Number of inspections Setup 18,750 Number of setups Materials handling 14,000 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: Activity Base Entry Dining Total Machine hours 7,500 12,500 20,000 Direct labor hours 2,000 3,000 5,000 Number of inspections 500 250 750 Number of setups 150 100 250 Number of loads 400 300 700 Units produced 5,000 2,500 7,500 a.…
Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget Actual For Year Ended December 31 Direct materials Direct labor Department manager salaries Snowmobile $ 19,610 10,500 ATV $ 27,600 Snowmobile $ 19,520 ATV $ 28,930 4,400 20,600 5,300 10,770 21,350 4,500 Supplies used Utilities Rent 3,410 370 5,800 910 550 6,400 3,270 340 5,400 4,500 940 510 6,400 Totals $ 44,090 $ 61,360 $ 43,800 $ 62,630 Exercise 24-1 (Algo) Responsibility accounting performance report LO P1 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. Responsibility Accounting Performance Report Controllable Costs Manager, Snowmobile Department For Year Ended December 31…
Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Units Setups Inspections Assembly (dlh) 3,400 3,600 8,800 7,200 Small table lamps Desk lamps 8,400 14,000 43,200 43,200 Total Activity-Base Usage Budgeted Activity Cost 10,800 $109,080 22,400 114,240 75,600 340,200 Activity Setups Inspections Assembly (dlh) The total factory overhead (rounded to the nearest cent) to be allocated to each unit of small table lamps is O a. $80.47 O b. $136.80 O c. $48.28 O d. $104.61
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
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Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $364,200 Number of purchase orders Scheduling 243,400 Number of production orders Materials handling 417,300 Number of moves Product development 773,900 Number of engineering changes Production 1,428,300 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,120 270 1,500 11 2,200 2,100 Tape drives 2,400 245 500 7 8,500 3,500 Wire drives 11,500 790 3,500 21 10,700 2,400 The activity-based cost for each tape drive unit is Oa. $291.69 Ob. $239.52 Oc. $740.06 Od. $20.21
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Rabia Company has two support departments, Human Resources and Maintenance, and two producing departments, Fabrication and Assembly Support Departments Producing Departments Human Resources Maintenance Fabrication Assembly Budgeted overhead Direct labor hours Machine hours Number of employees $40,000 $72,000 $140,000 $160,000 2,000 2,500 8,000 10,000 12,000 8,000 4 5 15 25 The company only had mixed cost. Human Resource costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours. Predetermined overhead rates for fabrication and assembly are based on direct labor hours. Required: 1. Calculate the allocation ratios. 2. Using the direct method, allocate the costs of the Human Resources and Maintenance deportments to the Fabrication and Assembly departments. Also write the final cost of both the production departments. 3. What if the Maintenance Department had 50 employees? How would that affect the allocation of Human Resources…

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