Culver's Medical operates three support departments and two operating units, Surgery and ER. The support departments areallocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR)departments is $270300, $154500, and $63000, respectively. Information on the hours used are as follows:Hours in AcctHours in AdminHours in HRAcctO $252768.$0.$275348.$277601.168Admin HR482048Surgery ER3601206522080130What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediatecalculations.)

The cost allocation to the operating units from the support department will be allocated on the…

Answered: Culver's Medical operates three support…

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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Sheridan Manufacturing incurs $81,500 of direct labour costs. Supporting records show that the assembly department used $44,100 of the direct labour and the finishing department used the remainder. Manufacturing overhead is assigned to departments on the basis of 186% of direct labour costs. Journalize the assignment of overhead to the assembly and finishing departments. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Mar. 31 Work in Process Inventory-Assembly Department Work in Process Inventory-Finishing Department Manufacturing Overhead eTextbook and Media Debit 82026 69,564 Credit
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.
Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and Trimming. The company budgets overhead cost of $246,250 in the Molding department and $206,250 in the Trimming department. The company budgets 16,000 machine hours (MH) in Molding and 25,000 direct labor hours (DLH) in Trimming. Actual production information follows. Number of Molding Department Units Hours per Unit Total Hours Trimming Department Hours per Unit Total Hours Part Z Part X Totals 3,000 2.0 MH per unit 4,000 2.5 MH per unit 6,000 MH 10,000 MH 16,000 MH 3 DLH per unit 9,000 DLH 4 DLH per unit 16,000 DLH 25,000 DLH Exercise 17-7 (Algo) Plantwide overhead rate LO P1 Required: 1. Compute the plantwide overhead rate using direct labor hours as the allocation base. 2. Determine the overhead cost per unit for each part using the…
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Vernon Services Company has 53 employees, 38 of whom are assigned to Division A and 15 to Division B. Vernon incurred $318,530 of fringe benefits cost during year 2. Required Determine the amount of the fringe benefits cost to be allocated to Division A and to Division B. Allocated Cost Division A B
Mervon Company has two operating departments: Mixing and Bottling. Mixing occupies 24,660 square feet. Bottling occupies 16,440 square feet. Indirect factory costs include maintenance costs of $234,000. If maintenance costs are allocated to operating departments based on square footage occupied, determine the amount of maintenance costs allocated to each operating department.
I could use some help answering this with the attached spreadsheet: Glassman Company acculated the following data for 2019: Milling Department manufacturing overhead $484,000 Finishing Department manufacturing overhead $260,000 Machine hours used Milling Department 10,000 Finishing Deparment 2000 Labor hours used Milling Department 1000 Finishing Department 1000 Assume that manufacturing overhead for Glassman Company above consisted of the following activities and costs: Setup (1000 setup hours) $288,000 Production scheduling (400 batches) $60,000 Production engineering (60 change orders) $180,000 Supervision (2000 direct labor hours) $56,000 Machine maintenance (12,000 machine hours) $168,000 Total activity costs $752,000 The following additional data were provided for Job 845: Direct materials costs $7000 Direct labor cost (5 milling direct labor hours; 35 finishing direct labor house) $1000 Setup hours…
Claims Management Inc. provides claims processing services to several large health insurance providers. Customers who are covered by health insurance provided by one of Claims Management's partners submit their claims for health and dental services along with related documentation, and the employees at Claims Management compare their claims to the details of their benefit plans and calculate the value of the benefits owed. The company uses a predetermined variable overhead rate based on direct labour-hours. In the month of September, 15,000 claims were processed using 4,500 direct labour-hours. The company incurred a total of $4,950 in variable overhead costs. According to the company's standards, 0.25 direct labour-hours are required to process a claim, and the variable overhead rate is $1.20 per direct labour-hour. Required. 1-a. What variable overhead cost should have been incurred to process the 15,000 claims? Standard variable overhead cost 1-b. How much does this differ from the…
Thornton Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Home 1 Home 2 Home 3 Direct labor $ 66,000 $ 100,000 $ 178,000 Direct materials 109,000 139,000 181,000 Assume Thornton needs to allocate two major overhead costs ($51,600 of employee fringe benefits and $30,030 of indirect materials costs) among the three jobs.RequiredChoose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 2 decimal places.)
1. What are the fees for a Basic Exam, Advanced Exam, and a Basic Exam assuming the goal is to cover only variable and fixed direct costs? Assume that the audiology department is allocated $100,000 in total overhead by the clinic, and the department director has allocated $50,000 of this amount to the three services listed above. (To answer this question, assume that the allocation of overhead costs to each service is made on the basis ofnumberof visits.) 2. What are the fees for a Basic Exam, an Advanced Exam, and a Basic Exam assuming the overhead costs must be covered? 7.2 The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data, are as follows: Copying and distribution of this PDF is prohibited without written permission. For permission, please contact Copyright Clearance Center at www.copyright.com Healthcare Finance Variable Cost Annual Direct Annual Number per Service Fixed Costs of…
Warner Company purchases $ 50,000 of raw materials on account, and it incurs $ 60,000 of factory labor costs. Supporting records show that (a) the Assembly Department used $ 24,000 of the raw materials and $ 35,000 of the factory labor, and (b) the Finishing Department used the remainder. Manufacturing overhead is assigned to departments on the basis of 160% of labor costs.Journalize the assignment of overhead to the Assembly and Finishing Departments. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit Mar.31 enter an account title for the journal entry on March 31 enter a debit amount enter a credit amount enter an account title for the journal entry on March 31 enter a debit amount enter a credit amount enter an account title for the journal entry on March 31 enter a debit amount enter a credit amount
The following information is available from the records of Diamond Cut, Inc.: Direct Materials-Assembly Department $10,000 Direct Materials-Finishing Department 15,000 Direct Labor-Assembly Department 11,000 Direct Labor-Finishing Department 20,000 Applied Overhead-Assembly Department 11,000 Applied Overhead-Finishing Department 20,000 Actual Overhead-Assembly Department 12,500 Actual Overhead-Finishing Department 17,500 What are the "total costs to account for" in the Assembly Department? a.$32,000 b.$21,000 c.$10,000 d.$44,500

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