Allocating Service Department Costs: Allocation Basis AlternativesWeld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1.Estimated directed overhead costs per month are as follows:P1 $450,000P2 750,000$1 273,000Other data follow:Numbers of employeesProduction capacity (units)Space occupied (square feet)Five-year average of $1's service output usedP1P215050100,000 60,0005,000 15,00065% 35%For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating 51 cost to the producing departments.1. Based on number of employees$P1P2$2. Production capacity in units3. Space occupied4.Five-year average of $1 service used627,450✔845,550✔5. Estimated direct overhead costs

Name: Allocating Service Department Costs: Allocation Basis AlternativesWel
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Allocating Service Department Costs: Allocation Basis AlternativesWeld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1.Estimated directed overhead costs per month are as follows:P1 $450,000P2 750,000$1 273,0

Cost allocation is the process of assigning indirect costs to specific cost objects or activities.…

Business

Accounting

Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows: P1 $450,000 P2 750,000 $1 273,000 Other data follow Numbers of employees Production capacity (units) Space occupied (square feet) Five year average of 51's service output used P1 P2 150 50 100,000 60,000 5,000 15,000 65% 35% For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating 51 cost to the producing departments. 1. Based on number of employees $ PL S P2 2. Production capacity in units 3.Space occupied 4. Five year average of $1 service used 627,450 845,550 5. Estimated direct overhead costs

Allocating Service Department Costs: Allocation Basis Alternatives Weld-Rite Fabricators has two producing departments, P1 and P2, and one service department, S1. Estimated directed overhead costs per month are as follows: P1 $450,000 P2 750,000 $1 273,000 Other data follow Numbers of employees Production capacity (units) Space occupied (square feet) Five year average of 51's service output used P1 P2 150 50 100,000 60,000 5,000 15,000 65% 35% For each of the following allocation bases, determine the total estimated overhead cost for P1 and P2 after allocating 51 cost to the producing departments. 1. Based on number of employees $ PL S P2 2. Production capacity in units 3.Space occupied 4. Five year average of $1 service used 627,450 845,550 5. Estimated direct overhead costs

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

Cost Classification Discussion Question The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month Total Production Costs Level of Activity (Units Produced) July $230,000 3,500 August 250,000 3,750 September 260,000 3,800 October 220,000 3,400 November 340,000 5,800 December 330,000 5,500 January 200,000 2,900 February 210,000 3,300 March 240,000 3,600 April 380,000 5,900 May 350,000 5,600 June 290,000 5,000 Determine the variable cost per unit and the fixed cost using the high-low method. What is the equation of the total mixed cost function? Based on the High-Low method, what is the total production costs if 6,500 units are produced? Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2 cm to represent 1,000 units on the x-axis & 2 cm to represent…
Need help
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below: Quarter First Second Third Fourth Direct materials $ 200,000 $ 100,000 $ 50,000 $ 150,000 Direct labor 120,000 60,000 30,000 90,000 Manufacturing overhead 240,000 216,000 204,000 ? Total manufacturing costs (a) $ 560,000 $ 376,000 $ 284,000 $ ? Number of units to be produced (b) 120,000 60,000 30,000 90,000 Estimated unit product cost (a) ÷ (b) $ 4.67 $ 6.27 $ 9.47 $ ? Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have…
Required information Dierich Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead Selling and administrative expenses Total Distribution of Resource Consumption: Manufacturing overhead Selling and administrative expenses Order Size 15% 60% Activity Cost Pools Other Customer Support 75% 20% 10% 20% $600,000 220.000 $820,000 Total 100% 100% D The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools.
hh
Income Statements under Absorption Costing and Variable Costing Crazy Mountain Sports Inc. assembles and sells snowmobile engines. The company began operations on March 1 and operated at 100% of capacity during the first month. The following data summarize the results for March: Line Item Description Amount Amount Sales (12,500 units) $6,250,000 Production costs (15,000 units): Direct materials $1,800,000 Direct labor 1,275,000 Variable factory overhead 225,000 Fixed factory overhead 600,000 3,900,000 Selling and administrative expenses: Variable selling and administrative expenses $125,000 Fixed selling and administrative expenses 45,000 170,000 Question Content Area a. Prepare an income statement according to the absorption costing concept. Crazy Mountain Sports Inc.Absorption Costing Income StatementFor the Month Ended March 31 Line Item Description Amount $- Select - - Select - $- Select - - Select - $-…
Mani
Exercise 7-7 (Static) First-Stage Allocations [LO7-2] The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank's operations. She has been particularly concerned about the costs of handling routine transactions at the bank and would like to compare these costs at the bank's various branches. If the branches with the most efficient operations can be identified, their methods can be studied and then replicated elsewhere. While the bank maintains meticulous records of wages and other costs, there has been no attempt thus far to show how those costs are related to the various services provided by the bank. The operations vice president has asked your help in conducting an activity-based costing study of bank operations. In particular, she would like to know the cost of opening an account, the cost of processing deposits and withdrawals, and the cost of processing other customer transactions. The Westfield branch of Security Home…
S Activity Cost Pool Labor-related Purchase orders Product testing Template etching General factory Activity Cost Pool Labor-related (DLHS) Activity Measure Direct labor-hours Number of orders Number of tests Number of templates Machine-hours Product A Product B Product C Product D Cost $ 19,250 $ 1,820 $ 6,320 $ 960 $ 68,600 Total Overhead Cost 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity 1,375 DLHS Expected Activity Product A Product B Product C Product D 300 650 125 300 20 65 180 190 Purchase orders (orders) Product testing (tests) 65 0 80 Template etching (templates) 250 0 26 10 4 General factory (MHs) 3,800 2,000 1,200 2,800 Using the ABC data, determine the total amount of overhead cost assigned to each product. 455 orders 395 tests 40 templates S 9,800 MHs
Dhapa
EstimatedFixedCost EstimatedVariableCost(perunitsold) Production costs: Direct materials $19 Direct labor 13 Factory overhead $261,300 10 Selling expenses: Sales salaries and commissions 54,300 4 Advertising 18,400 Travel 4,100 Miscellaneous selling expense 4,500 4 Administrative expenses: Office and officers' salaries 53,100 Supplies 6,500 2 Miscellaneous administrative expense 6,040 2 Total $408,240 $54 It is expected that 8,640 units will be sold at a price of $135 a unit. Maximum sales within the relevant range are 11,000 units. Required: Question Content Area 1. Prepare an estimated income statement for 20Y7. Belmain Co.Estimated Income StatementFor the Year Ended December 31, 20Y7 $- Select - Cost of goods sold: $- Select - - Select - - Select -…
Identify the semi-variable costs: 10,000 units 18,000 units Materials $15,000 $27,000Labour $13,000 $19,400Rent $11,500 $11,500Selling overheads $30,000 $46,000 Question 2 options: 1) materials and labour 2) labour and rent 3) rent and selling overheads 4) labour and selling overheads