Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at Dubay Films for the past month follow Supplying Department Accounting Facilities Direct cost Accounting 0.10 $ 170,000 Facilities 0.40 . $ 174,500 Accounting Using Department Training Facilities 0.20 0.10 $ 310,000 Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method, What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Independent 0.10 0.20 $ 199,000 Cost Allocation To Training Commercial 6.30 e.co $285,000 Independent

Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at Dubay Films for the past month follow Supplying Department Accounting Facilities Direct cost Accounting 0.10 $ 170,000 Facilities 0.40 . $ 174,500 Accounting Using Department Training Facilities 0.20 0.10 $ 310,000 Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method, What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Independent 0.10 0.20 $ 199,000 Cost Allocation To Training Commercial 6.30 e.co $285,000 Independent

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Description: Please help me Activity and selected costs for three production departments (Training, Independent, and Commercial) and two servicedepartments (Accounting and Facilities) at DuBay Films for the past month followSupplying DepartmentAccountingFacilitie

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 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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es Activity and selected costs for three production departments (Training, Independent, and Commercial) and two service departments (Accounting and Facilities) at DuBay Films for the past month follow: Supplying Department Accounting Facilities Direct cost From: Service department costs Accounting Facilities Total allocations Direct costs Total costs Accounting 0 0.20 $ 180,000 Required: Allocate service department costs to Training, Independent, and Commercial using the reciprocal method. What are the total costs of Training, Independent, and Commercial after this allocation? Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Accounting $ $ Facilities 0.30 0 $ 179,500 0 $ 0 $ Using Department Training 0.20 0.20 $ 320,000 Facilities Cost Allocation To: Training 0 $ Independent 0.10 0.10 $ 200,000 0 $ 0 $ 0 $ Commercial 0.40- 0.50 $ 286,000 Independent 0 $ 0 $ Commercial…
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Activity-based costing: factory overhead costs The total factory overhead for Bardot Marine Company is budgeted for the year at 600,000, divided into four activities: fabrication, 204,000; assembly, 105,000; setup, 156,000; and inspection, 135,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows: Each product is budgeted for 250 units of production for the year. Determine (A) the activity rates for each activity and (B) the activity-based factory overhead per unit for each product.
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Lonsdale 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: 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: a. Determine the activity rate for each activity. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round to the nearest cent.
Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400
Allocating selling and administrative expenses using activity-based costing Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: In addition, the company incurs selling and administrative expenses of 226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: Activity-base usage and unit volume information for the three customers is as follows: Instructions 1. Determine the activity rates for each of the three nonmanufacturing activity pools. 2. Determine the activity costs allocated to the three customers, using the activity rates in (1). 3. Construct customer profitability reports for the three customers, dated for the year ended December 31, using the activity costs in (2). The reports should disclose the gross profit and operating income associated with each customer. 4. Provide recommendations to management, based on the profitability reports in (3).
Job order cost accounting for a service company The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 65% of media purchases. On August 1, the four advertising projects had the following accumulated costs: During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: At the end of August, both the Vault Bank and Take Off Airlines campaigns were completed. The costs of completed campaigns are debited to the cost of services account. Journalize the summary entry to record each of the following for the month: A. Direct labor costs B. Media purchases C. Overhead applied D. Completion of Vault Bank and Take Off Airlines campaigns
Support department cost allocation comparison Refer to your answers to Exercises 7-9. Compare the total support department costs allocated to each production department under each cost allocation method. Which production department isallocated the most support department costs (a) under the direct method, (b) under the sequentialmethod, and (c) under the reciprocal services method? EX 19-7 Support department cost allocationdirect method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Allocate the support department costs to the production departments using the direct method. EX 19-8 Support department cost allocationsequential method Refer to the information provided for Becker Tabletops in Exercise 7. Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first. EX 19-9 Support department cost allocation reciprocal services method Refer to the information provided for Becker Tabletops in Exercise 7. Allocate the support department costs to the production departments using the reciprocal services method.
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Direct Costs $ 140, 600 98, 200 42,000 78,400 Required Required A B From: Required: Use the step method to allocate the service costs, using the following: Service department costs Quality control Repair Total costs allocated Proportion of Services Used by Quality Repair Control FabricatingFinishing a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). 0 0.3 Complete this question by entering your answers in the tabs below. Quality Control 0.3 0 Use the step method to allocate the service costs, using the following: The allocations are made in the reverse order (starting with Quality…
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Required A Required: Use the step method to allocate the service costs, using the following: Required B Direct Costs Repair $ 143,600 104, 200 44,700 83,500 a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). From: Proportion of Services Used by Quality Control Fabricating Finishing 0 0.8 Complete this question by entering your answers in the tabs below. Service department costs Repair Quality control Total costs allocated Repair 0.2 0 0 $ Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. Note: Amounts to be deducted…
Variable costing income statement for a service companyThe actual and planned data for Underwater University for the Fall termwere as follows: EnrollmentTuition per credit hourCredit hoursRegistration, records, and marketing cost per enrolled studentInstructional costs per credit hourDepreciation on classrooms and equipment 4,500$12060,450$275 $64$825,600 4,125$13543,200$275 $60$825,600 Registration, records, and marketing costs vary by the number ofenrolled students, while instructional costs vary by the number of credithours. Depreciation is a fixed cost. A. Prepare a variable costing income statement showing thecontribution margin and operating income for the Fall term.B. Prepare a contribution margin analysis report comparingplanned with actual performance for the Fall term.