Hii ticher please given correct answer general Accounting question Company ABC has manufacturing plants P and Q.Total utility expense is $48,000. Plant P's direct utilitycost is $8,000 and Plant Q's is $12,000. Remainingindirect utility costs should be allocated equallybetween plants.Calculate total utility expense for each plant.

Step 1: Define Total Utility Expense CalculationThe total utility expense for each plant is…

Answered: Company ABC has manufacturing plants P…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

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Spin Cycle Architecture uses three activity pools to apply overhead to its projects. Each activity has a cost driver used to allocate the overhead costs to the projects. The activities and related overhead costs are as follows: initial concept formation $40,000, design $300,000, and construction oversight $100,000. The cost drivers and expected use are as follows.Expected Use of Cost Drivers Activities Cost Drivers per ActivityInitial concept formation Number of project changes 20 Design Squarefeet 150,000 Construction oversight Number of months 100(a) Compute the predetermined overhead rate for each activity. (b) Classify each of these activities as unit-level, batch-level, product-level, or facility-level.
Johnson's Plumbing's fixed costs are $700,000 and the unit contribution margin is $18. What amount of units must be sold in order to realize an operating income of $100,000?
How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipment
When using the reciprocal method to allocate support costs, which of the following equations represents the two algebraic expressions needed for the total costs of a Custodial Department (C) that includes not only $120,000 of direct costs but also 15% of the Maintenance Departments (M) cost and the Maintenance Department that consists of $10,000 of direct costs and $40% of the Custodial Department? Question options: a) C = $120,000 + (.15 x M) and M = $10,000 + (.40 x C). b) C = $120,000 + (.15 ÷ M) and M = $10,000 + (.40 ÷ C). c) C = $120,000 – (.15 x M) and M = $10,000 – (.40 x C). d) C = ($120,000 x .15) + M and M = ($10,000 x .40) + C.
The cost of operating the Maintenance Department is to be allocated to four production departments based on the floor space each occupies. Department A occupies 600 m²; Department B, 900 m²; Department C, 1200 m²; and Department D, 600 m². If the July cost was $17,600, how much of the cost of operating the Maintenance Department should be allocated to each production department? The operating cost for Department A is $ (Simplify your answer.) The operating cost for Department B is $ (Simplify your answer.) The operating cost for Department C is $ (Simplify your answer.) The operating cost for Department D is $ (Simplify your answer.)
2. Assume that Kizzle's management allocates Maintenance costs based on the number of service calls. Further assume that in a given period, the Janitorial, Mixing, and Cooking activities incur 16, 40, and 24 service calls, respectively, and that the Janitorial and Maintenance costs of that period are $3,000 and $4,200, respectively. Determine the total costs allocated from each support activity to the other three activities using the reciprocal services method. Malntenance cost allocation: Janitorial: Mixing: $4 Cooking: Janitorial cost allocation: Maintenance: Mixing: Cooking: 3. The company is considering changing from the reciprocal service method to a simpler method. Why should the company continue with the reciprocal service method? a. It is complex, but more accurate. b. It can be practiced if the company has sufficient resources and capacity. C. The simpler cost allocation methods are less accurate. d. All the above.
Johnson Plumbing's fixed costs are $700,000 and the unit contribution margin is $17. What amount of units (rounded to a whole number) must be sold in order to realize an operating income of $100,000? a.58,882 b. 5,000 c.47,059 d.41,176
How much total cost would be allocated to the assembly activity cost pool?
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In Marshall Company, data concerning two products are unit contribution margin-Product A $16, Product B $12; machine hours required for one unit-Product A 4, Product B 4. Compute the contribution margin per unit of limited resource for each product. (Round answers to 2 decimal places, e.g. 0.15.) Contribution margin per unit of limited resource $ Product A $ Product B
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.50; direct labor, $14.50, and incremental overhead $3.50. An outside supplier has offered to sell the product to Paxton for $37.00. Compute the net incremental cost or savings of buying the component. Multiple Choice $3.50 cost per unit $8 5 savings per unit. $0 cost or savings per unit $8.50 cost per unit. $3.50 savings per unit
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Company ABC has manufacturing plants P and Q. Total utility expense is $48,000. Plant P's direct utility cost is $8,000 and Plant Q's is $12,000. Remaining indirect utility costs should be allocated equally between plants. Calculate total utility expense for each plant.