DLN is an architectural firm that designs and builds build- ings. It prices each job on a cost plus 20% basis. Overhead costs in 2017 are $8,100,000. DLN's simple cost- ing system allocates overhead costs to its jobs based on number of jobs. There were three jobs in 2017. One customer, Chandler, has complained that the cost and price of its building in Chicago was not competitive. As a result, the controller has initiated a detailed review of the overhead allocation to determine if overhead costs should be charged to jobs in proportion to consumption of overhead resources by jobs. She gathers the following information: Quantity of Cost Drivers Used by Each Project Overhead Manley 8,000 4,500 26,000 Department Design Engineering Construction Cost Driver Costs in 2017 Chandler Нeпry Design department hours Number of engineering hours $3,000,000 1,000,000 4,100,000 $8,100,000 2,000 4,000 29,000 10,000 4,000 27,000 Labor-hours

DLN is an architectural firm that designs and builds build- ings. It prices each job on a cost plus 20% basis. Overhead costs in 2017 are $8,100,000. DLN's simple cost- ing system allocates overhead costs to its jobs based on number of jobs. There were three jobs in 2017. One customer, Chandler, has complained that the cost and price of its building in Chicago was not competitive. As a result, the controller has initiated a detailed review of the overhead allocation to determine if overhead costs should be charged to jobs in proportion to consumption of overhead resources by jobs. She gathers the following information: Quantity of Cost Drivers Used by Each Project Overhead Manley 8,000 4,500 26,000 Department Design Engineering Construction Cost Driver Costs in 2017 Chandler Нeпry Design department hours Number of engineering hours $3,000,000 1,000,000 4,100,000 $8,100,000 2,000 4,000 29,000 10,000 4,000 27,000 Labor-hours

Name: Q.Compute the overhead allocated to each project in 2017 using departm
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Q.Compute the overhead allocated to each project in 2017 using department overhead cost rates. DLN is an architectural firm that designs and builds build-ings. It prices each job on a cost plus 20% basis. Overhead costs in 2017 are $8,100,000. DLN's

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

In each blank next to the following types of indirect expenses and service department expenses, place the identifying letter of the best allocation basis to use to distribute it to the departments indicated. 1. Computer service expenses of production scheduling for operating departments. 2. General office department expenses of the operating departments. 3. Maintenance department expenses of the operating departments. 4. Electric utility expenses of all departments. A. Relative number of employees. B. Proportion of total time in each department for maintenance. C. Proportion of floor space occupied by each department. D. Proportion of total processing time for each operating department.
14. Overheads that are concerned with the production function are known as________ a. Selling Overhead b. Distribution Overhead c. Production Overhead d. Office Overhead
Estimated overhead to be $ 500000 , Direct labor hours are 50000 , Machine hours are to be 25000 , overhead applied based on Direct labor What is the predtermined overhead rate?
The direct method as used is one method that can be used to re-assign service department cost.Discuss two other methods that can be used to re-assign service department overheads.
Nn. 126.
18. Which of the following would be an appropriate allocation base for support department costs associated with an accounting department? a. Number of accounting transactions processed b. Number of purchase requisitions prepared c. Square footage of the office space occupied by accounting d. Number of units of product sold
Ht.16.
Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet 66,500 Asset Values Materials 58 $ 10,350 Personnel 8 Manufacturing Packaging 9,500 95,000 19,000 4,140 38,640 70 64 15,870 Total 200 190, 000 $ 69,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Cost Allocation Base Supervision $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Asset values Utilities Insurance Total $ 168,000 Allocate each of the three indirect expenses to the four departments.
What is the measured mile approach used for?a. Calculate budget spentb. Measure office overheadc. Calculate loss of productivityd. Measure unit costs on site
37.Applied overhead consists of which of the following? a. actual activity times predetermined overhead rate b. estimated activity times predetermined overhead rate c. actual activity times actual overhead rate d. estimated activity times actual overhead rate
For each of the following expenses, select the best allocation basis. A. Value of insured assets. B. Square feet of space occupied. C. Proportion of total purchase orders for each operating department. D. Number of employees in department. Maintenance department expenses of the operating departments. Payroll department expenses of all departments. Purchasing department expenses for the operating departments. Insurance expenses of all departments.
2. Austin Electronics manufactures two large-screen television models: the Royale, which sells for $1,600, and a new model, the Majestic, which sells for $1,300. Few per unit cost data are given: Traditional Costing DM Royale $850 Majestic $570 DL ($20 per hour) MOH ($38 per DLH) $140 $248 $100 $190 In 2017, Austin manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $38 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,600,000 by the total direct labor hours (200,000) for the two models. Management is considering phasing out the Royale model (comparatively low profit) and increasing the production of the Majestic model Before finalizing its decision, management asks Austin's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2017. Est. Overhead Activity | Level 40,000 18,000…