Determine the total costs that each operating segment would be accountable for if the step method is used to allocate supportcosts; assume support departments are ranked according to their original cost. (Round intermediate calculations to 4 decimal places,e.g. 15.2516 and final answers to 2 decimal places, e.g. 15.25.)Total costs $Operating SegmentsInstitutionalTaythank and Media.776887.5Retail468712.5 Novak Juice Company produces and distributes concentrated orange juice. It has been operating in two key customer segments foryears, selling to institutional customers and retail customers. The production departments are supported by the following threeservices: Administrative, Information Systems, and Maintenance. To date, the accounting team has simply allocated the support costsevenly between the two operating segments in order to determine total costs. Realizing that there are more accurate ways ofassigning these costs, the new controller has asked you to prepare support department cost allocations using three other (andarguably more accurate) methods. Financial information is as follows.Original costsProportion of Administrative hoursusedProportion of Information Systemshours usedProportion of Maintenance hoursusedAdministrative$77,0000.200.10Support DepartmentsInformation:Systems$110,6000.100.10Maintenance$57,0000.100.10Operating SegmentsInstitutional:$649,000 $352,0000.450.40Retail0.300.350.300.50

Cost allocation is the process of assigning costs to different cost objects. A cost object can be…

Determine the total costs that each operating segment would be accountable for if the step method is used to allocate support costs; assume support departments are ranked according to their original cost. (Round intermediate calculations to 4 decimal places, e.g. 15.2516 and final answers to 2 decimal places, e.g. 15.25.) Total costs. $ Operating Segments Institutional 776887.5 Retail 468712.5

Determine the total costs that each operating segment would be accountable for if the step method is used to allocate support costs; assume support departments are ranked according to their original cost. (Round intermediate calculations to 4 decimal places, e.g. 15.2516 and final answers to 2 decimal places, e.g. 15.25.) Total costs. $ Operating Segments Institutional 776887.5 Retail 468712.5

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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ezto.mheducation.com Homework: Cost Management and Allocation Assignment Question 7- Homework: Cost Management and Allocation Assignment- Connect Homework: Cost Management and Allocation Assignm... i Saved Help Save & Exit Submit Check my work State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows. 4. points Administration Communications Facilities Deposits $8,320,000 $4,600,000 447, 000 Loans Direct costs $200,000 24,000 $290,000 31,000 $253,000 20,500 Employee hours Number of employees Square footage occupied Skipped 360,000 8. 14 6. 230 130 4,600 13,800 5,100 244, 100 203,300 The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number of employees; and Facilities, square…
Service Emphasis The following analysis of selected data is for each of the two services Rockville Corporation provides. Service G Service H Per-unit data at 10,000 services Sales price Service costs: Variable Fixed Selling and administrative expenses: Variable Fixed $ Revenue Less: Variable cost Contribution margin Labor hours per unit Contribution margin per labor hour $ $36 $ 19 6 G 5 3 In the Rockville's operation, labor capacity is the company's constraining resource. Each unit of G requires 3 hours of labor, and each unit of H requires 1 hours of labor. Assuming that all service can be sold at a normal price, prepare an analysis showing which of the two services should be provided with any unused productive capacity that Rockville might have. Service $23 36 $ 25 X 11 * $ 3 3.67 × $ 15 4 2 1 H 23 19 x 4 x 1 4 × Any unused capacity should be devoted to Service H, which has $2 less contribution margin per labor hour than does Service G. Any unused capacity should be devoted to…
Required information SB (Static) The following information is... [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Cost $ 30,000 20,000 100,000 150,000 Total Cost Allocated S1 0% 20 P2 35% 20 60 Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3] What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $100,000 to $120,000? 52 P1 30% 35% 0