sequential method pleaseChekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.Direct costsNormal activity:Number of employeesSquare footageHuman ResourcesGeneral FactorySupport DepartmentsHumanResources$160,0001,200Direct costsAllocate:GeneralFactory$330,000General FactoryHuman ResourcesTotal after allocation40Human ResourcesProducing DepartmentsFabricating AssemblyThe costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on thebasis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departmentsare ranked in order of highest cost to lowest cost.Required:$114,4001. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter"0". Use the rounded values for subsequent calculations.Human ResourcesRequired:1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter"0". Use the rounded values for subsequent calculations.Support Departments.805,400$93,00015013,800Proportion of Driver Used byGeneral Factory2. Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assemblydepartments. If an amount is zero, enter"0". Round your answers to the nearest dollar.General FactoryFabricatingAssemblyProducing DepartmentsFabricatingAssembly

The costs of support departments can be allocated to producing departments on the basis of direct…

Direct costs Normal activity: Number of employees Square footage Support Departments Human Resources $160,000 1,200 General Factory $330,000 40 Producing Departments Fabricating Assembly $114,400 80 5,400 $93,000 150 13,800 he costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated wasis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support depar are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero,

Direct costs Normal activity: Number of employees Square footage Support Departments Human Resources $160,000 1,200 General Factory $330,000 40 Producing Departments Fabricating Assembly $114,400 80 5,400 $93,000 150 13,800 he costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated wasis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support depar are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero,

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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Premium Company provides the following ABC costing information: Activities Costs Account inquiry $200,000 Account billing $140,000 Activity-cost drivers 25,000 Account verification accounts $75,000 Total costs 4,000,000 lines Correspondence letters 10,000 hours 40,000 accounts Account billing lines 250,000 lines Department B Account inquiry hours hours Select one: 4,000 letters The above activities are used by Departments A and B as follows: 4,000 hours Account verification accounts accounts 8,000 accounts Correspondence letters a. $8,750 b. $8,500 c. $8,250 d. $8,540 Total 1,600 letters $440,000 Department 2,500 10,000 400,000 lines letters How much of the account billing cost will be assigned to Department B 1,200
Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments HumanResources GeneralFactory Fabricating Assembly Direct costs $165,000 $380,000 $114,200 $90,000 Normal activity: Number of employees — 40 70 150 Square footage 1,800 — 5,500 13,200 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded…
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Employees Materials 26 30,000 $ 9,300 Personnel 13 12,000 2,480 Manufacturing Packaging 52 66,000 37,820 39 12,000 12,400 Total 130 120,000 $ 62,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost $ 82,700 Number of employees Allocation Base 52,000 Square feet occupied 23,500 Asset values $ 158,200 Allocate each of the three indirect expenses to the four departments.
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Fans Company has two service departments-product design and engineering support, and two production departments-assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice $631,492 Design 0% 20% $1,018.633. SERVICES PROVIDED TO $ 162,000 $ 142,000 $ 552,000 $ 842,000 Support 10% 0% The total cost accumulated in the assembly department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar. Assume that the engineering support department goes first): Assembly 30% 45% Finishing. 60% 35%
Support department cost allocation-direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant detail Support Department Cost Driver Square footage to be serviced Janitorial Department Cafeteria Department Number of employees Janitorial Department $310,000 Cafeteria Department $169,000 5,000 3 Janitorial Department cost allocation. Cafeteria Department cost allocation Cutting Department $1,504,000 Department costs Square feet 50 1,000 Number of employees 10 30 Allocate the support department costs to the production departments using the direct method. Cutting Department Assembly Department $580,000 4,000 10 Assembly Department
Support department cost allocation-direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Janitorial Department $300,000 Janitorial Department cost allocation Cafeteria Department cost allocation Cafeteria Department $170,000 4,700 2 44 8 Department costs Square feet Number of employees Allocate the support department costs to the production departments using the direct method. Cutting Department LA Cutting Department $1,500,000 2,400 21 $ Assembly Department SA Assembly Department $680,000 3,600 9 S < 11:15 PM 2/25/2024
Direct costs Square footage Number of employees A Maintenance $126,000 800 $36,000 $42,750 Haman Resources $64,000 400 12 Q Zoom Mixing Finishing $105,000 $175,000 1,200 1,600 24 32 Lola Corporation consist of two service departments, Maintenance and Human Resources. John Company also has two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while Human Resources costs are allocated based on number of employees. The following information has been gathered for the current year: If the step-down method is used to allocate service department costs, and the Maintenance Department is allocated first, the amount of costs allocated from the Maintenance Department to the Mixing Department is B $63,000 $42,000
Volume-based method of overhead cost allocation Required: -Allocate costs to products on the basis of labour hours -Over head cost rate = - Please write the formula or equation
Rabia Company has two support departments, Human Resources and Maintenance, and two producing departments, Fabrication and Assembly Support Departments Producing Departments Human Resources Maintenance Fabrication Assembly Budgeted overhead Direct labor hours Machine hours Number of employees $40,000 $72,000 $140,000 $160,000 2,000 2,500 8,000 10,000 12,000 8,000 4 5 15 25 The company only had mixed cost. Human Resource costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours. Predetermined overhead rates for fabrication and assembly are based on direct labor hours. Required: 1. Calculate the allocation ratios. 2. Using the direct method, allocate the costs of the Human Resources and Maintenance deportments to the Fabrication and Assembly departments. Also write the final cost of both the production departments. 3. What if the Maintenance Department had 50 employees? How would that affect the allocation of Human Resources…