ABC Corporation has three service department with the following costs and activity base: Service Department Cost Activity Base for Allocation Graphics Production $200,000 Number of Copies Accounting 500,000 Number of invoices processed Personnel Department 400,000 Number of employees ABC has three operating divisions (organized as profit centers), mirco, macro, and super. Their revenue, cost and activity information are-as follows: Mirco Мacro Super Direct Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies 20,000 30,000 50,000 Number of invoices 700 800 500 processed Number of employees 130 145 125 How much of the $500,000 total cost from the accounting department would be allocated to the super division?

ABC Corporation has three service department with the following costs and activity base: Service Department Cost Activity Base for Allocation Graphics Production $200,000 Number of Copies Accounting 500,000 Number of invoices processed Personnel Department 400,000 Number of employees ABC has three operating divisions (organized as profit centers), mirco, macro, and super. Their revenue, cost and activity information are-as follows: Mirco Мacro Super Direct Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies 20,000 30,000 50,000 Number of invoices 700 800 500 processed Number of employees 130 145 125 How much of the $500,000 total cost from the accounting department would be allocated to the super division?

Name: ABC Corporation has three service department with the following costs
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: ABC Corporation has three service department with the following costs and activity base:Service DepartmentCostActivity Base for AllocationGraphics Production$200,000Number of CopiesAccounting500,000Number of invoices processedPersonnel Department400

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

The following information relates to Wagner, Inc.: Advertising Costs $10,600 Administrative Salaries 12,800 Delivery Vehicle Depreciation 1,200 Factory Repair and Maintenance 800 Indirect Labor 16,500 Indirect Materials 14,500 Manufacturing Equipment Depreciation 2,500 Administrative Office Rent 52,000 President's Salary 1,500 Sales Revenue 460,000 Sales Salary 5,200 How much were Wagner's period costs? Question content area bottom Part 1 A.$ 465 comma 200 $465,200 B.$ 83 comma 300 $83,300 C.$ 34 comma 300 $34,300 D.$ 6 comma 700
None
Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT IT Accounting 0% HR West East 20% 40% 40% Accounting 0% 0% 40% 60% HR 10% 10% 60% 20% The direct costs of the service departments In the previous period were $91,750 for IT, $119,000 for Accounting, and $162,500 for HR. Required: Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by IT, and then Accounting. Note: Amounts to be deducted should be Indicated by a minus sign. Service department costs HR allocation IT allocation Accounting allocation Total costs allocated IT Accounting HR West East 91,750 S 119,000 $ 162,500 16,250 (162,500) 97,500 32,500 0 0 S 108,000 S 119,000 S 0 $ 97,500 S 32,500
Sagar
Shamrock Co. manufactures three types of computer desks. The income statement for the three products and the whole company is shown below: Sales Variable costs Fixed costs Total costs Operating income (loss) Product A Product B Product C $110,000 $135,000 75,000 125,000 $88,000 46,000 25,200 71,200 $16,800 18,000 93,000 $17,000 18,000 143,000 $(8,000) Total $333,000 246,000 61,200 307.200 $25,800 The company produces 1.000 units of each product. The company's capacity is 17,000 machine hours. The machine hours for each product are 7 hours for Product A, 5 hours for Product B, and 5 hours for Product C. Fixed costs are allocated based on machine hours.
The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two production departments — fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM TO Purchasing Maintenance Fabrication Assembly Purchasing 0 % 35 % 35 % 30 % Maintenance 65 % 0 % 20 % 15 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Purchasing $ 144,000 Maintenance 66,000 Fabrication 120,000 Assembly 96,000 The total cost accumulated in the fabrication department using the step method is (assume the purchasing department goes first; calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): Multiple Choice a. $231,464. b. $236,914. c. $189,086. d. $195,786. e. $201,536.
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Salaries $ 30,000 20,000 40,000 Depreciation Advertising Department Drilling Grinding Total Multiple Choice Allocation Base Number of employees Cost of goods sold Percentage of total sales Number of employees 1,000 1,500 2,500 $20,000. Sales $ 325,000 475,000 $ 800,000 The amount of depreciation that should be allocated to Drilling for the current period is: Cost of goods sold $ 75,000 125,000 $ 200,000
ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 number of copies made Accounting 500,000 number of invoices processed Personnel 400,000 number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows: Micro Macro Super Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 800 500 Number of employees 130 145 125 The support department cost that will be allocated to the Macro Division is a.$175,000 b.$130,000 c.$305,000 d.$405,000
Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Products Division's divisional segment margin is $39,800 and the Export Products Division's divisional segment margin is $92,200. The total amount of common fixed expenses not traceable to the individual divisions is $104,400. What is the company's net operating income (loss)? $236,400 $132,000 $27,600 ($132,000)
Sagar
a
Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $320,000, variable expenses of $158,100, and traceable fixed expenses of $72,300. The Alpha Division has sales of $630,000, variable expenses of $343,800, and traceable fixed expenses of $135,100. The total amount of common fixed expenses not traceable to the individual divisions is $137,200. What is the company's net operating income? Multiple Choice $103,500 $448,100 $286,200 $240,700