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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
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- 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 %24Departmental 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…
