Adrian Cursio & Associates is a consulting business that operates in a rented office in Melbourne CBD, offering t
Q: Determine the total costs that each operating segment would be accountable for if support costs are…
A: The costs from the support departments can be allocated to the operating departments using various…
Q: Departmental information for the four departments at Samoa Industries is provided below. Total…
A: Under the Direct allocation method, the cost of service departments are directly allocated to the…
Q: Fans Company has two service departments — product design and engineering support, and two…
A: The reciprocal method provides the accurate distribution of costs between service departments and…
Q: Department Employees Square Feet Asset Values Materials 40 60,000 $ 9,750 Personnel 8 7,500…
A: Cost allocation:The process of identifying cost and assigning the costs to the cost object is known…
Q: Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities…
A: SOLUTION- ACTIVITY BASED COSTING- IT IS A METHOD OF ALLOCATING INDIRECT COSTS TO UNIT PRODUCT…
Q: The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method…
A: The cafeteria cost allocated to cutting department and assembly department are $93,750 and $31,250…
Q: Allen Company has three departments - Lawn, Bush, and Plowing. Allen Company uses ABC for the…
A: The question is based on the concept of Cost Accounting.In order to calculate the total cost…
Q: Management of XYZ Media has decided to allocate the costs of the paper's two service/support…
A: In this question, we can allocate the costs by using two overhead distribution methods as Direct…
Q: Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),…
A: The indirect costs are the costs that are not related directly to the production. The costs can be…
Q: Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs…
A: The question is related to allocation of Common Computer service cost of $286000 on the basis of…
Q: Manning Systems is a commercial software vendor that sells billing and other financial software to…
A: Activity based costing means where the product is valued on the basis of actual direct material,…
Q: Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and…
A: The complete amount of money spent on a product is its total cost. Because overhead expenditures…
Q: Miracle Consulting Corporation has its headquarters in Chicago and operates from three branch…
A: The objective of the question is to calculate the amount of headquarters cost allocation that the…
Q: The law firm END, LLP provides legal services to a wide range of clients in the KC area. The firm…
A:
Q: Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),…
A: One technique for allocating costs that makes use of simultaneous equations is the reciprocal…
Q: Fans Company has two service departments — product design and engineering support, and two…
A: Cost allocation is the process of identifying, accumulating and assigning costs to specific cost…
Q: Departmental information for the four departments at Samoa Industries is provided below. Total Cost…
A: Total no. of square feet for Cafeteria, Cutting, and Assembly departments =20000+4000+16000 = 40000…
Q: Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two…
A: Overhead : Indirect costs incurred while producing goods or services. Overhead costs cannot be…
Q: Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and…
A: Responsibility accounting is one of the branches of modern costing systems that majorly applies to…
Q: project (direct materials, direct labor, and overhead) are multiplied by 140% to determine the…
A: Profit is earned over the cost which denotes to billing amount after adding profit to cost.
Q: Scaffolder Ltd. is a manufacturing company making construction items. The production process is…
A: Apportionment of Overheads :- It refers to allotment of different item costs with their item units…
Q: Renats Company has four departments: Materials, Personnel, Manufacturing, and Packaging Information…
A: Cost allocation is the method using which the costs incurred as a whole on different activities can…
Q: Ready Company has two operating production departments Assembly and Painting Assenoy his 210…
A: Allocation of costs is one of important concept being used in cost accounting. Under this, all the…
Q: total costs
A: Definition: Apportionment of Overheads: It refers to allotment of different item costs with their…
Q: Flamingos, Inc. has two service departments and two operating (production) departments.…
A: Allocation of service department cost is the process where the total cost of the service department…
Q: Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments,…
A: Cost allocation is used in analyzing or identifying the process to assign the cost to people, and…
Q: er, Inc., a manufacturer of kayak ranches: Sand and Clay. Each lling costs. performance evaulation…
A: The answer is stated below:
Q: Company B is a manufacturing company. The production process is divided into two production…
A: Overhead is the amount of money incurred by the entity on the making of the goods. It includes the…
Q: The amount of administration expenses that should be allocated to the Assembly Department for the…
A: What is Cost Allocation?The allocation of costs for service departments is a crucial step in cost…
Q: Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided…
A: Meeting with clients total cost $ 1,205,892.00 Divide by total activity (in meeting hours)…
Q: Data concerning three of the activity cost pools of Salcido LLC, a legal firm, have been provided…
A: Activity rate is the term used in activity-based costing which represents the overhead cost per…
Q: based on the hours used. The cost of operating the accounting (acct), administration (admin), and…
A: In the reciprocal method of calculation of allocation of costs, there are three methods…
Q: Sheffield's Medical operates three support departments and two operating units, Surgery and ER. The…
A: In the reciprocal method of calculation of allocation of costs, there are three methods…
Q: Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),…
A: The direct method of allocation is used to allocate the cost of the service department to the…
Q: Salvatore LLC provides a wide variety of legal services and uses an activity-based costing system.…
A: Cost pool activity rate = Total client meetings cost/Number of meeting hours
Q: Departmental information for the four departments at Samoa Industries is provided below. Total…
A: Cost drivers are the unit of activity which can affect the level or volume of an activity that…
Q: General Motors has three auto divisions (1, 2, and 3). It also has an accounting division and a…
A: To allocate the costs of running the accounting and management consulting departments among the…
Q: Logan Products has two production departments-assembly and finishing. These are supported by two…
A: here's a brief explanation of each of these cost allocation methods:Direct Method: The direct method…
Q: The following departmental information is for the four departments at Samoa Industries.…
A: The different methods to allocate the costs from support department to production department are…
Q: Culver's Medical operates three support departments and two operating units, Surgery and ER. The…
A: The cost allocation to the operating units from the support department will be allocated on the…
Q: Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information…
A: Cost allocation is the method using which the costs incurred as a whole on different activities can…
Q: The following departmental information is for the four departments at Samoa Industries. Number of…
A: The objective of the question is to determine the proportional usage of the Janitorial Department by…
Q: Allen Company has three departmentd - lawn, bush, and plowing. Allen Company uses ABC for the…
A: In order to calculate the labor cost assigned to the Bush Department we need to calculate the cost…
Adrian Cursio & Associates is a consulting business that operates in a rented office in Melbourne CBD, offering
The following information is provided for the three departments:
Divisional costs includes professional staff wages to directly providing advice and conduct consulting to clients. The common cost made up of reception wages and rent is totalled at $165,000. If the common cost is allocated by income, what is the profit (or loss) made by the Insurance division?
a.
$37,784.82
b.
$35,000
c.
$355,000
d.
$142,215.18
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT HR IT tickets 0 Employees 18 1,555 0 Publishing 2,488 27 Binding 2,177 45 Department direct costs $ 154,400 $ 248,490 $ 432,200 $ 395,500 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. From: Service department costs IT HR Total Cost Allocation To: IT HR Publishing BindingMcCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 clerks who process and pay supplier invoices. The total cost of their salaries is $450,000. The work distribution for the activities that they perform is as follows: Activity Percentage of Time on Each Activity Comparing source documents 10 % Resolving discrepancies 55 % Processing payment 35 % Required: Assign the cost of labor to each of the three activities in the accounts payable department. Round your answers to the nearest dollar. Activity Cost Assignment Comparing source documents Sfill in the blank 1 Resolving discrepancies $fill in the blank 2 Processing payment Sfill in the blank 3 Comparing source documents Resolving discrepancies Processing paymentChirko & Partners, a Quebec-based public accounting partnership, specializes in audit services. Its job-costing system has a single direct-cost category (professional labor) and a single indirect-cost pool (audit support, which contains all costs of the Audit Support Department). Audit support costs are allocated to individual jobs using actual professional labor-hours. Chirko & Partners employs 10 professionals to perform audit services. Budgeted and actual amounts for 2017 are as follows: Budget for 2017 Professional labor compensation $975,000 Audit support department costs $675,000 Professional labor-hours billed to clients 15,000 hours Actual results for 2017 Audit support department costs $775,000 Professional labor-hours billed to clients 15,500 hours Actual professional labor cost rate $54 per hour 1. Compute the direct-cost rate and the indirect-cost rate per professional labor-hour for 2017…
- Kia Corporation has two departments, A and B. Central costs could be allocated to the two departments in various ways. Square footage of department A and B 6,000 and 18,000 square feet respectively, Number of employees of department A and B 1,500 and 500 respectively, and sales of department A and B $400,000 and $2,000,000 respectively. If total processing costs of $96,000 are allocated on the basis of number of employees, the amount allocated to Department B would be: a. $24,000 b. $28,800 c. $16,000 d. $67,200The following departmental information is for the four departments at Samoa Industries. Departmental Total Cost Cost Driver Square Feet Number of Employees Janitorial $150,000 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Question Content Area 1. Determine the dollar amount of the Janitorial Department costs to be allocated to the (a) Cafeteria, (b) Cutting, and (c) Assembly departments. Department Amount a. Cafeteria Department fill in the blank 1 of 3$ b. Cutting Department fill in the blank 2 of 3$ c. Assembly Department fill in the blank 3 of 3$…Founder Consulting Corporation has its headquarters in Memphis and operates from three branch offices in Nashville, Atlanta, and Louisville. Two of the company's activity cost pools are Administrative Service and Development Service. These costs are allocated to the three branch offices using an activity-based costing system. Information for next year follows: Activity Cost Pool Activity Measure Estimated Cost Administrative service % of time devoted to branch $ 1,680,000 Development service Computer time $ 630,000 Estimated branch data for next year is as follows: Time to branch Computer time Nashville 70 % 1,600,000 minutes Atlanta 20 % 1,200,000 minutes Louisville 10 % 400,000 minutes Total 100 % 3,200,000 minutes How much of the headquarters cost allocation should Nashville expect to receive next year?
- Martinez's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $261100, $156800, and $55000, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 What amount of costs would be allocated from the accounting department to the other support departments (admin and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.) O $27522. O $28768. O $0. O $28981.having trouble figuring out the Cost of Services? any advice? 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: August 1 Balances Vault Bank $270,000 Take Off Airlines 80,000 Sleepy Tired Hotels 210,000 Tastee Beverages 115,000 Total $675,000 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct…Departmental information for the four departments at Samoa Industries is provided below. Total Cost Cost Driver Square Feet Number of Employees Janitorial $150,000 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Samoa uses the sequential method to allocate support department costs, first allocating the costs from the Janitorial Department to the Cafeteria, Cutting, and Assembly departments. Determine the dollar amount of the Janitorial Department costs to be allocated to the: a. Cafeteria Department b. Cutting Department c. Assembly Department %24 %24
- Departmental information for the four departments at Samoa Industries is provided below. Total Cost Cost Driver Square Feet Number of Employees Janitorial $150,000 Square footage serviced 200 40 Cafeteria 50,000 Number of employees 20,000 12 Cutting 1,125,000 4,000 120 Assembly 1,100,000 16,000 40 The Janitorial and Cafeteria departments are support departments. Determine the dollar amount of the Janitorial Department costs to be allocated to the (a) Cutting and (b) Assembly departments using the direct method. a. Cutting Department b. Assembly Departmenta. Eye for detail is an interior decorating firm located in sydney. The following costs were incurred in the firms contract to redecorate the local council offices: direct material $5,600 Professional labour 12 000 The firms budget for the year included the following estimates: Budgeted overhed $800,000 Budgeted proffesional labour 500,000 1. Calculate the total cost of the firms contract to redcorate the council offices. Overhead is applied to contracts using a predetermined overhead rate, calculated annually, based on the professional labour cost. Materials are charged directly to each contract 2. Using the total cost to calculate a service fee, assuming that the company adds a 40 per cent profit margin to total cost. b. Refer to the information for a. 1. Calculate the fee charged to redecorate the council offices assuming that the firm uses a chargeout rate of $360 per professional labour hour, which includes a profit margin of 40 per cent, and 120 hours are worked on the…Galley Company, a manufacturer of small kitchen appliances, had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $73,000 2600 hours Account billing (lines) $39,000 16,000 lines Account verification (accounts) $12,000 30,000 accounts Correspondence (letters) $10,000 1600 letters The above activities are carried out at two of its regional offices. Activities Northeast Office Midwest Office Account inquiry (hours) 160 hours 300 hours Account billing (lines) 14,000 lines 7000 lines Account verification (accounts) 1400 accounts 600 accounts Correspondence (letters) 60 letters 130 letters What is the cost per line for the account billing activity? (Round your answer to the nearest cent.) Group of answer choices $2.44 $28.08 $15.00 $4.56