Candice Corporation produces reusable christmas cards in two departments: Printingand Laminating. These departments are supported by two service departments:Personnel and Maintenance. Personnel uses.the number of employees as an allocationbase and Maintenance uses machine hours. The expected level of activity for nextquarter is shown below:No. of employees Machine hoursPersonnel40Maintenance60120PrintingLaminating60,00040,000180Allocations are made in the order shown above. Budgeted costs for next quarter areP93,000 for Personnel and P68,000 for Maintenance. 16. What is the total amount of service cost that should be allocated to the PrintingDepartment under the direct and step method?Step methodP 77,070Direct methodа..P 68,700b.P 77,070P 78,000edtetiosac oP 78,000P 78,000с.P 81,100d..P 77,070

Answer 1) Direct Method: Under direct method, service department costs are allocated to production…

Candice Corporation produces reusable christmas cards in two departments: Printing and Laminating. These departments are supported by two service departments: Personnel and Maintenance. Personnel uses.the number of employees as an allocation base and Maintenance uses machine hours. The expected level of activity for next quarter is shown below: No. of employees Machine hours 40 Personnel Maintenance 60 120 Printing Laminating 60,000 40,000 180 Allocations are made in the order shown above. Budgeted costs for next quarter are P93,000 for Personnel and P68,000 for Maintenance.

Candice Corporation produces reusable christmas cards in two departments: Printing and Laminating. These departments are supported by two service departments: Personnel and Maintenance. Personnel uses.the number of employees as an allocation base and Maintenance uses machine hours. The expected level of activity for next quarter is shown below: No. of employees Machine hours 40 Personnel Maintenance 60 120 Printing Laminating 60,000 40,000 180 Allocations are made in the order shown above. Budgeted costs for next quarter are P93,000 for Personnel and P68,000 for Maintenance.

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

Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is $179,400, and 13,800 orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. per sales order b. Determine the amount of sales order processing cost that Nozama.com would receive if it had 7,900 sales orders.
T-Shirt Co. makes two products: A and B. In the cutting department, budgeted information is as follows: Budgeted manufacturing overhead: $400,000 Budgeted machine hours: 80,000 Budgeted units produced: 50,000 The company allocates overhead based on units produced. The actual number of machine hours spent on product B is 30,000 and 10,000 units of product B are produced. How much is the manufacturing overhead of product B in the cutting department? 80,000 230,000 320,000 150,000
Crane Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Crane is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be assigned to each product line. The information shown below relates to overhead. Units planned for production Material moves per product line Purchase orders per product line Direct labor hours per product line Mobile Safes 200 300 450 800 Walk-in Safes 50 200 350 1,700
Clark Inc plans to sell 9000 lawn chairs during May, 9700 in June, and 7000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Clark produce during June? 10105 9295 Not enough information to determine 10750
Prepare "budgeted income statement" for May. 3.) Salsa has two service departments, the Maintenance Department and the IT Department. Salsa has also two production departments, the Cutting department and the Mixing Department. The usage of the two service departments' output for the year is as follows: User of Service Maintenance Maintenance IT 25% 40 % 35 % Provider of Service Maintenance: $ 200,000 IT: $ 120,000 15% IT Cutting Mixing The budgeted costs in the two service departments for the year as follows: 45% 40% Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of Maintenance and IT departments.
Mountain Trails manufactures backpacks for adventurers. Management is preparing budgets for the month, and is trying to determine the Overhead Budget amounts. Variable overhead is budgeted to be incurred at a rate of $5 per direct labor hour (including utilities, indirect materials, and indirect labor). Budgeted direct labor hours are 6,300 hours for the period. Fixed overhead amounts include the following: Factory rent $5,000; Factory supervisor salary $8,400; Depreciation $11,200; Insurance $2,100; and Factory security $3,500. What is the predetermined overhead rate (applied on the basis of direct labor hours? (Round to 3 decimal places) Select one: a. $16.666 b. $5.000 C. $4.794 O d. $11.666 e. None of these options are correct.
D
The following data relates to Coachman Company's budgeted amounts for next year. Budgeted Data: Department 1 Department 2 Overhead costs $ 300,000 $ 400,000 Direct labor hours 60,000 DLH 80,000 DLH Machine hours 1,000 MH 2,000 MH What is the company's plantwide overhead rate if machine hours are the allocation base? (Round your answer to two decimal places.) Multiple Choice $100.00 per MH $150.00 per MH $233.33 per MH $4.90 per MH $5.00 per MH Please dont provide answer in image format thank you
Sleep Tight, Inc. manufactures bedding sets. The budgeted production is for 37,100 comforters this year. Each comforter requires 1.5 hours to cut and sew the material. The cost of cutting and sewing labor is $15.60 per hour. Determine the direct labor budget for this year.
Narp. Ine, is preparing a budget for next vear and requires a breakdown of the cost of steam used in its factory into fixed and variable components. The following data on the cost of steam used and the units produced are available for the last six months: 25) Cost of Steam Units Produced July August September. October $ 15,850 13,000 16,370 20,000 17,600 18.500 3,000 c22,000 2,900 3,750 2,670 2.650 16.970 November. December. Total.... S101.320 ans Sharp uses the high-low method of analysis. Required: Show your work in answering the question. Failure to do so results in zero points a. What is the estimated variable cost of steam per unit produced? b. What is the total fixed cost? c. If there were 2,500 units produced the cost of steam would be?
A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Production Dept. Service Cost Center Supervision Maintenance Occupancy Dept.1 Dept. 2 Supervision Equipment maint. Building occunpany 10% Direct costs in the various departments are as follows: 10% 5% 40% 45% 45% 55% 10% 35% 45% Direct Cost P 35,000 Label si S2 Department Supervision Équipment maintenance Building occupancy Production Dept. No. 1 Production Dept. No. 2 If the direct method of allocation is used, how much of the supervision departinent's eost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision) 30,000 90,000 350,000 450,000 S3 PI P2 а. 0 b. P1,750 с. Р3,500 d. P5,250
answer in text form please (without image)