Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager cancontrol: direct materials, direct labor, supplies used, and utilities. For Year Ended December 31 Budget Actual Snowmobile ATV Snowmobile ATV Direct materials $ 19,990 $ 28,000 $ 19,920 $ 29, 370 Direct labor 10,900 21,000 11,210 21,790Department manager salaries 4,800 5,700 4,900 4,900 Supplies used 3,850 950 3,670 970 Utilities 410 590 380 550 Rent 6,200 6,800 5,800 6,800 Totals $ 46,150 $ 63,040 $ 45,880 $ 64,380

Arctica Departmental Performance Analysis (Year Ended December 31)This analysis compares the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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: Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) 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.
Please refer to the pictures for info and questions 1 and 2. See below for question 3 format. Department Departmental Overhead Rate Standard Deluxe Hours per Unit Overhead Allocated Hours per Unit Overhead Allocated Assembly Finishing Totals $0 $0
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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 Proportion of Services Us by Quality Direct Costs Repair $ 130,600 90, 200 38,400 71, 600 0 0.8 Control Fabricating Finishing 0.2 0 Required: Use the step method to allocate the service costs, using the following: 0.5 0.1 a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). 0.3 0.1
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Department Personnel Custodial Services Maintenance Printing Binding Personnel Custodial Services Maintenance Printing Binding Total budgeted cost Total Labor- Square Feet of Space Occupied Printing Department Binding Department Total hours Hours 16,000 8,200 14,300 30,600 108,000 177,100 Budgeted overhead costs in each department for the current year are shown below: $ 300,000 66,000 93,400 Req 1 Req 2 12,400 3,100 10,500 40,400 20,900 87,300 Machine-Hours 2,400 500 2,900 414,000 170,000 $ 1,043,400 Number of Employees 22 49 69 Req 3A 105 300 545 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Machine- Hours Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the…
Pre-Fabricators Inc manufacturers and assembles prefabricated concrete and green heart homes for the lower to middle income housing market. There are three support departments and two production departments. The budgeted costs and the normal activity levels for each department are given below. Support Departments Production Departments Design and Personnel Fabrication & assembly Installation Concrete Green Heart Overhead costs $150,000 $3,00,000 $1,820,000 Square feet 200 3600 2,400 60,000 72,000 Number of employees 3 11 6 18 14 Material Cost $45,000 $450,000 $720,000 2,000,000 $1,800,000 Homes (estimated production) 40 60 Prime manufacturing cost per home $78,000 $62,500 The allocation bases are as follows: Design – Number of Employees, Fabrication –Square feet and Installation – Material costs. The production department allocates overhear cost to each case based on the budgeted cases…
Support department cost allocation-direct 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: Support Department Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Janitorial Department $300,000 Janitorial Department cost allocation Cafeteria Department cost allocation Cafeteria Department $170,000 4,700 2 44 8 Department costs Square feet Number of employees Allocate the support department costs to the production departments using the direct method. Cutting Department LA Cutting Department $1,500,000 2,400 21 $ Assembly Department SA Assembly Department $680,000 3,600 9 S < 11:15 PM 2/25/2024
Support Department Cost Allocation—Direct Method Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 36 and 54 trees, respectively, in them at 1 time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows: Maintenance Department $6,000 Janitorial Department 5,000 Cutting Department 50,000 Pruning Department 8,000 Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the…
Please answer all the 4 requirement otherwise skip it 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)
Support Department Cost Allocation—Direct Method Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintenance and janitorial labors are performed throughout the production process by nonproduction employees. Maintenance and janitorial costs are allocated based on machine hours used and the number of trees in each department, respectively. The company estimates that the cutting and pruning areas typically have about 28 and 42 trees, respectively, in them at 1 time. The company also estimates that the cutting process requires about 9 times as many machine hours as the pruning process. The total costs of each department are as follows: Maintenance Department $8,000 Janitorial Department 6,000 Cutting Department 56,000 Pruning Department 9,000 Using the direct method of support department cost allocation, determine the total cost of each production department after allocating all support costs to the…

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