Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be basec on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Depairtment DLH Loans Processed Direct Costs 000' 000'6 $280,000 $180,000 Consumer 0OL Commercial If Banc Corp. Trust uses a bankwide rate based on the number of loans processed, what would be the total costs for the Consumer Department? Multiple Choice 000'087s

Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be basec on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period: Depairtment DLH Loans Processed Direct Costs 000' 000'6 $280,000 $180,000 Consumer 0OL Commercial If Banc Corp. Trust uses a bankwide rate based on the number of loans processed, what would be the total costs for the Consumer Department? Multiple Choice 000'087s

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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Suppose you are the human resource manager for a cellular phone company with 700 employees. Top management has asked you to implement three additional fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These include group term life insurance, a group legal services plan, and a wellness center. The life insurance is estimated to cost $390 per employee per quarter. The legal plan will cost $312 semiannually per employee. The company will contribute 40% to the life insurance premium and 75% to the cost of the legal services plan. The employees will pay the balance through payroll deductions from their biweekly paychecks. In addition, they will be charged 1 4 % of their gross earnings per paycheck for maintaining the wellness center. The company will pay the initial cost of $800,000 to build the center. This expense will be spread over 5 years. (a) What total amount should be deducted per paycheck for these new…
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Rent on a manufacturing plant donated by the city, where the agreement calls for a fixed-fee payment unless 200,000 labor-hours are worked, in which case no rent is paid.
nal Storage employs 88 workers with a s monthly payroll of $133,000. Fringe efits are 8.6% of payroll for a profit- g plan and $9.23 per employee for life insurance. ercent of payroll is the total cost of penefits? Round your answer to the E tenth of a percent.
Assume that Central University allocates the total annual building cost of $2,000,000 in the following manner: a. All vacant office space is absorbed by the university and is not allocated to the departments. b. All occupied office space costs are allocated on the basis of actual square footage used by each department. c. All common area costs are allocated on the basis of a department’s practical capacity. Calculate the cost allocated to each department in 2018 under this plan. Do you think the allocation method used here is appropriate? Explain.
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Dallas National Bank had the following activities, traceable costs, and physical flow of driver units: Activities Traceable Costs Physical flow of Driver Units Open new accounts $50,000 1,000 accounts Process deposits 36,000 400,000 deposits Process withdrawals 15,000 200,000 withdrawals Process loan applications 27,000 900 applications The above activities are used by the Memorial branch and the University branch: Memorial University New accounts 200 400 Deposits 40,000 20,000 Withdrawals 15,000 18,000 Loan applications 100 160 Refer to Dallas National Bank. What is the cost per driver unit for the deposit activity? Select one: a. $30.00 b. $0.09 c. $0.075 d. $50.00
Flavor Enterprises has been approached about providing a new service to its clients. The company will bill clients $160 per hour; the related hourly variable and fixed operating costs will be $70 and $18, respectively. If all employees are currently working at full capacity on other client matters and average hourly profit margin is $88, should the company accept this new services or not, use calculation to support your answer.
Problem
The fixed costs of operating the Srepta Corp. are $4,800,000 annually. Variable costs are incurred at the rate of $25 per maintenance-hour. On average, the company incurs 38,000 maintenance-hours per year. Budgeted and actual hours per user for 2019 are as follows: Budgeted hours Actual hours Building and grounds 10,000 9,800 Administration 2,500 1,600 Customer Service 18,000 22,500 IT support 7,500 7,800 Total 38,000 41,700 Assume that budgeted maintenance-hours are used to calculate the allocation rates. 1. Using a single-rate allocation and budgeted usage, how much will each department be allocated? 2. Using a dual-rate allocation with fixed costs allocated according to budgeted hours and variable costs allocated to actual hours, how much overhead will each department be allocated?