enata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet Asset Values $ 6,000 Department Materials Personnel Manufacturing Packaging Total Supervision expenses Department Materials Personnel Manufacturing Packaging 27 9 63 51 150 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Allocation Base Indirect Expense Supervision Utilities Cost $82,500 Number of employees 50,000 square feet occupied 22,500 Asset values Insurance Total $ 155,000 Allocate each of the three indirect expenses to the four departments. Totals 25,000 5,000 55,000 15,000 100,000 1,200 37,800 15,000 $ 60,000 Allocation Base Percent of Allocation Base Denominator Numerator % of Total Cost to be Allocated Allocated Cost

enata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet Asset Values $ 6,000 Department Materials Personnel Manufacturing Packaging Total Supervision expenses Department Materials Personnel Manufacturing Packaging 27 9 63 51 150 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Allocation Base Indirect Expense Supervision Utilities Cost $82,500 Number of employees 50,000 square feet occupied 22,500 Asset values Insurance Total $ 155,000 Allocate each of the three indirect expenses to the four departments. Totals 25,000 5,000 55,000 15,000 100,000 1,200 37,800 15,000 $ 60,000 Allocation Base Percent of Allocation Base Denominator Numerator % of Total Cost to be Allocated Allocated Cost

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1PB: Support department cost allocation Hooligan Adventure Supply produces and sells various outdoor...

See similar textbooks

Similar questions

Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Materials Personnel Manufacturing Packaging Employees Square Feet Asset Values $ 7,900 4,740 45,820 20,540 $ 79,000 38 19 76 57 64,750 9,250 92,500 18,500 Total 190 185,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Cost Allocation Base $ 84,400 Number of employees 69,000 Square feet occupied 32,000 Asset values $ 185,400 Insurance Total Allocate each of the three indirect expenses to the four departments. Supervision Cost to be Allocated Allocation Base Percent of Allocation Base Allocated Cost expenses Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Cost to be Allocated Utilities Allocation Base Percent of Allocation Base Allocated Cost Department Numerator Denominator % of Total…
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.
Renats Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet Asset values $ 18,358 4,148 Department Materials Personal Manufacturing Packaging Total Supervision expences Department Materials Personnel Manufacturing Packaging Totals Utilitiec The four departments share the following Indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Cost Allocation Base Supervision utilities $82,880 Number of employees 59,888 Square feet occupied 27,880 Asset values $ 168,000 Insurance Total Department Materials Personnel Manufacturing Packaging Allocate each of the three Indirect expenses to the four departments. Totals 58 Incurance Department Materials Personnel Manufacturing Packaging 8 70 64 Totals 66,500 9,500 95,000 19,808 198,800 Allocation Base 38,648 15,878 $ 69,000 Allocation Bate Allocation Base Percent of Allocation Baca Numerator Denominator of Total Percent…
Interdepartment Services: Step Method Jane Cooper's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. Copper's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows: Direct department cost Number of employees Gross payroll Personnel Payroll Housewares Clothing Furniture $15,600 $6,400 15 $ 33,500 $ 24,400 $40,000 24 12 12 $ 12,000 $6,600 $ 21,200 $26,100 $ 16,200 (a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.) 0 % % (b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department.…
Interdepartment Services: Direct Method Wilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (S1, S2, and S3). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments. Services provided Services Provided to from S1 S2 S3 P1 P2 -- 5% 25% 50% 20% 5 45 40 20 60 S1 S2 S3 The direct operating costs of the service departments are as follows: S1 $ 98,000 S2 187,000 S3 36,000 Total costs 10% Using the step method, prepare a schedule for Wilhelm Manufacturing Company allocating the service department costs to the producing departments. (Round calculations to the nearest dollar. Do not round until your final answers.) Service Departments Producing Departments P1 S2 0 $ P2 158,260 x 162,740 x $ Check 15 5 S1 S3 0
Subject accounts
D1. Account
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Employees Transactions Department direct costs Required A Administration 37,000 $363,000 Required: a. Allocate the cost of the service departments to the operating departments using the direct method. b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. c. Allocate the cost of the service departments to the operating departments using the reciprocal method. Complete this question by entering your answers in the tabs below. Required B Required C From Accounting Domestic International 26 47 22,000 $141,000 $955,000 Department costs Administration allocation Accounting allocation Total cost Allocate the cost…
Solomon Information Services, Incorporated, has two service departments: human resources and billing. Solomon's operating departments, organized according to the special Industry each department serves, are health care, retall, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Number of employees Annual cost Annual revenue Req A1 Human Resources Department Reg A2 Billing Health Care Retail Legal Services Total *This is the operating cost before allocating service department costs. Allocation Rate 20 Req B1 $ 900,000 Complete this question by entering your answers in the tabs below. x X Billing Required a. Allocate service department costs to operating departments, assuming that Solomon adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and…
Comprehensive support department allocationsManagement at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $1,094,100 14 $541,940 Human resources 689,780 11 408,380 Advertising 1,340,920 17 1,067,360 Circulation 1,893,640 36 2,618,420 Totals $5,018,440 78 $4,636,100 e. Using the algebraic method, allocate the support department costs to the revenue-generating departments. Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%). Note: Round your final answer to the nearest…
Comprehensive support department allocationsManagement at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $1,094,100 14 $541,940 Human resources 689,780 11 408,380 Advertising 1,340,920 17 1,067,360 Circulation 1,893,640 36 2,618,420 Totals $5,018,440 78 $4,636,100 c. Assuming that the benefits-provided ranking is the order shown in the table, use the step method to allocate the support department costs to the revenue-generating departments.Note: Round your final answers only to the nearest whole dollar. Amount allocated…
Karen Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. Indirect Expense Cost Allocation Base Supervision Utilities $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Value of assets in use Insurance Total $168,000 Departmental data for the company's recent reporting period follow. Department Materials Employees Square Feet 66,500 9,500 95,000 19,000 Asset Values 58 $10,350 4,140 38,640 15,870 Personnel 8 Manufacturing Packaging 70 64 Total 200 190,000 $69,000 1. Use this information to allocate each of the three indirect expenses across the four departments. 2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use this information to allocate…