GantAccounting performs two types of services, Audit and Tax. Gant's estimated overhead costs consist of computer support, $300,000;and legal support, $150,000. Information on the two services and their estimated use of cost drivers is as follows:Direct labor costCPU minutesLegal hours usedAuditA. $150,000.B. $180,000.C. $270,000.D. $300,000.$50,00040,000200Tax$100,00010,000800Overhead assigned to audit services using traditional costing using direct labor cost as the base is

and legal support, $150,000. Information on the two services and their estimated use of cost drivers is as follows: Tax $100,000 Direct labor cost CPU minutes Legal hours used Audit $50,000 40,000 A. $150,000. B. $180,000. C. $270,000. D. $300,000. 200 10,000 800 Overhead assigned to audit services using traditional costing using direct labor cost as the base is

and legal support, $150,000. Information on the two services and their estimated use of cost drivers is as follows: Tax $100,000 Direct labor cost CPU minutes Legal hours used Audit $50,000 40,000 A. $150,000. B. $180,000. C. $270,000. D. $300,000. 200 10,000 800 Overhead assigned to audit services using traditional costing using direct labor cost as the base is

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

Answer with all workings for all with steps explanation calculation formula answer in text
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
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…
What is the correct choice? Field Legal Services is trying to determine the variable and fixed elements of its service overhead. The following data have been collected from recent activity: Total Service Overhead Cases Worked March $22,900 112 April 20,800 98 May 26,400 138 The formula for total service overhead costs is a. $5,600 + $140 per case. b. $5,600 + $40 per case. c. $7,823 + $134.62 per case. d. $7,080 + $140 per case.
Premium Company provides the following ABC costing information: Activities Costs Account inquiry $200,000 Account billing $140,000 Activity-cost drivers 25,000 Account verification accounts $75,000 Total costs 4,000,000 lines Correspondence letters 10,000 hours 40,000 accounts Account billing lines 250,000 lines Department B Account inquiry hours hours Select one: 4,000 letters The above activities are used by Departments A and B as follows: 4,000 hours Account verification accounts accounts 8,000 accounts Correspondence letters a. $8,750 b. $8,500 c. $8,250 d. $8,540 Total 1,600 letters $440,000 Department 2,500 10,000 400,000 lines letters How much of the account billing cost will be assigned to Department B 1,200
help answer 5 and 6
Note: Answer letter D only.
Original costs Proportion of Administrative hours used Proportion of Information Systems hours used Proportion of Maintenance hours used (a) Total costs Administrative Institutional $77,000 0.20 Operating Segments 0.10 Support Departments Information Systems Maintenance $110,600 $62,000 0.10 Retail 0.10 0.10 0.10 Operating Segments Institutional Retail $649,000 $351,000 0.45 0.40 Determine the total costs that each operating segment would be accountable for if support costs are allocated using the direct method. (Round interme 0.30 0.35 0.30 0.50
Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments HumanResources GeneralFactory Fabricating Assembly Direct costs $165,000 $380,000 $114,200 $90,000 Normal activity: Number of employees — 40 70 150 Square footage 1,800 — 5,500 13,200 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded…
C Ltd has two departments A & B. Overhead is applied based on direct labour hours in department A and machine hours in department B. The following additional information is available: i) ii) iii) Budgeted Overheads Budgeted direct labour hours Budgeted direct labour cost Budgeted machine hours Department A Department B $300,000 $360,000 50,000 40,000 $240,000 $330,000 68,000 80,000 Compute the overhead rate for Department A. Compute the overhead rate for Department B. Given that the actual overheads were as follows Direct labour hours Direct labour cost Machine hours Actual overheads Dept. A 45,000 $60,000 25,000 $285,000 Dept. B 35,000 $50,000 75,000 $320,000 Calculate the under- or over-applied overheads for each department and for the organization as a whole.
Please help me with show all calculation thanku
None