Based on this information the amount of the cost to be allocated is $102,000. the indirect cost is the "allocation base". the students are the "cost objects". All of the answers are correct.
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The Science Institute has three departments: Biology, Chemistry, and Physics. The institute's controller wants to estimate the cost of operating each department. He has identified several indirect costs that must be allocated to each department including $52,000 of indirect salaries, $9,000 of office supplies, and $41,000 of office rent. There are 500 students in the biology department, 200 in chemistry and 300 in physics. The director of the Institute wants to know how much of the indirect cost to allocate to each department. Based on this information
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the amount of the cost to be allocated is $102,000.
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the indirect cost is the "allocation base".
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the students are the "cost objects".
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All of the answers are correct.
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- The Vest School of Vocational Technology has organized the school training programs into three departments. Each department provides training in a different area as follows: nursing assistant, dental hygiene, and office technology. The school's owner, Candice Vest, wants to know how much it cost to operate each of the three departments. To accumulate the total cost for each department, the accountant has identified several indirect costs that must be allocated to each. These costs are $10,080 of telephone expense, $2,016 of supplies expense, $720,000 of office rent, $144,000 of janitorial services, and $150,000 of salary paid to the dean of students. To provide a reasonably accurate allocation of costs, the accountant has identified several possible cost drivers. These drivers and their association with each department follow. Cost Driver Department 1 Department 2 Department 3 Number of telephone 28 16 19 Number of faculty members 20 16 12 Square footage of office space 28,000 16,800…Zachary Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $453,200. The annual cost of operating the computer services department is $345,000. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. I Sewell clinic Alphretta clinic Gwinnett clinic Legal services Computer services Required a. Allocate the cost of computer services to all of the clinics and the legal services department. b. After allocating the cost of computer services, allocate the cost of legal services to the three clinics: c. Compute the total allocated cost of…Thornton Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $331,000. The annual cost of operating the computer services department is $292,600. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Number of Patients:Number of Workstations Sewell clinic 6, 500 : 7 Alphretta clinic 5, 600: 11 Gwinnett clinic 6,300 : 14 Legal services 6 Computer services 18 Required Allocate the cost of computer services to all of the clinics and the legal services department. After allocating the cost of computer services, allocate the cost of…
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- Blue Africa Inc. produces laptops and desktop computers. The company’s production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company’s production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $246,000. The total cost of the Cafeteria Department is $838,000. The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department 10 540 Cafeteria Department 24 2,400 Laser Department 40 3,200 Forming Department 50 2,400 Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments. CafeteriaDepartment…Blue Africa Inc. produces laptops and desktop computers. The company’s production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company’s production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $241,000. The total cost of the Cafeteria Department is $403,000. The number of employees and the square footage in each department are as follows: Employees Square Feet Security Department 10 530 Cafeteria Department 24 2,400 Laser Department 40 4,800 Forming Department 50 800 Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments.Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows. How much of the cost of the Personnel Department is allocated to Department B using the direct method? Round to the nearest dollar. Personnel Department 200 Standard service hours used Number of employees O A. $8,000 O B. $60,000 O C. $12,632 D. $5,000 E. $15,000 Maintenance Department 200 10 20 CO Production Department A 240 40 Production Department B 160 120