Example 1 Budgeted Data: VC or VMOH base: sq. ft. base: employees Support Departments Janitor $415,000 12,000 25 Personnel $150,000 20,000 4 Operating Departments Mixing $130,000 10,000 75 Canning $170,000 70,000 50 Determine the amount of Janitor and Personnel department costs that would be allocated to the Mixing and Canning departments' budgets using (1) the direct method

Example 1 Budgeted Data: VC or VMOH base: sq. ft. base: employees Support Departments Janitor $415,000 12,000 25 Personnel $150,000 20,000 4 Operating Departments Mixing $130,000 10,000 75 Canning $170,000 70,000 50 Determine the amount of Janitor and Personnel department costs that would be allocated to the Mixing and Canning departments' budgets using (1) the direct method

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 24E: Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to...

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please help me with all 3 parts, Direct Method, Stepdown Method, and Reciprocal Method Class Examples for Cost Allocation for Multiple Support Departments Example 2 Budgeted Data: Support Departments Facility Service Personnel $100,000 $60,000 6,000 8,000 5 VC or VMOH base: sq ft base: employees 25 Operating Depts Mixing $130,000 12,000 10 Canning $170,000 10,000 20 Assume that the budgeted number of square footage and budgeted number of employees equal the actual for each, respectively. The cost driver for the Facility Service department is square footage and the cost driver for the personnel department is the number of employees 1) Allocate the two support department costs to the two operating departments using a. Direct Method b. Stepdown Method c. Reciprocal Method
A partial responsibility accounting report for a cost center is below. The value of letter (c) would be: Over (Under) Budget Controllable Costs Budgeted Actual Direct materials.... $52,800 $ a Direct labor....... 24,000 26,000 Utilities 19,200 C Totals... $96,000 $96,600 A $19,000 B $19,400 C) $54,000 D) $2,000 E None of the above $(1,200) b (200) $ 600
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Given the following information, determine the activity rate (rounded to the nearest cent) for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 11,000 $58,100 Inspections 25,200 $147,200 Assembly (dlh) 72,000 $375,700 a. $5.22 O b. $5.28 c. $5.84 O d. $5.37
Given the following information, determine the activity rate for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,100 $63,200 Inspections 24,100 $137,300 Assembly (dlh) 72,000 $400,600
Reciprocal Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments GeneralFactory Receiving Assembly Finishing Direct overhead $400,000 $160,000 $43,000 $74,000 Square footage — 2,700 5,400 5,400 Number of receiving orders 300 — 1,680 1,020 Direct labor hours — — 25,000 40,000 Required: 1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. (Round allocation ratios to two decimal places. Round allocated costs to the nearest dollar. If an amount is zero, enter "0".) Allocation ratios: General Factory Receiving Assembly Finishing Square footage Number of receiving orders Allocations: General Factory Receiving Assembly Finishing Direct overhead cost $ $ $ $ General Factory Receiving Total $ $ $ $ 2. Using direct labor…
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Budgeted data for the year considered of the following Item Personal Purchasing Machining Painting Overhead costs $40,000 $35,000 $128,000 $48,000 # of employees 10 15 25 138 Machine Hour 0 0 23500 29 Direct labor costs 0 0 32,000 147,000 Purchase requisitions 6 0 2650 450 1. Allocate the two service departments' costs using the sequential allocation method and develop departmental overhead rates for each of the production departments using the most logical base for each department. 2. Calculate and give the journal entry to record the total amount of under- or overapplied over- head for the company, assuming the following actual results for the year: Machining Painting Overhead costs $173,000 78,540 Direct labour costs $38,300 139,750 Machine hours 24,150 29 3. briefly discuss reasons for allocating service department costs.
Westmore Company has two service departments and two operating departments. Budgeted costs and other data relating to these departments are presented below:Building Operating Department& Grounds Personnel A BDepartmental costs ..... $54,000 $200,000 $650,000 $800,000Square feet occupied ... 1,000 3,000 12,000 15,000Number of employees .... 10 5 45 55Direct laborhours ..... 76,000 92,000The costs of Building & Grounds are allocated first on the basis of square feet of space occupied. Personnel costs are allocated on the basis of numberof employees. The departmental costs for the operating departments are overhead costs. Predetermined overhead rates in the operating departments are computed on the basis of direct laborhours.Assume that the company uses the direct method of allocating service department costs. The predetermined overhead rate that would be used in Department B would be closest to:a. $11.50/DLH.b. $12.00/DLH.c. $10.00/DLH.d. $10.22/DLH.
Service Cost Allocation Harley Corp. has two service departments, (Admin Support Dept. & It Support Dept.) and two producing departments (AgencyLine and BancAssure). Provided below are the relevant data: Service Departments Operating Departments Admin IT Services AgencyLine BancAssure Direct Costs P150,000 P300,000 P5,000,000 P6,000,000 Services by Admin Support 40% 40% 20% Services by IT Support 20% 70% 10% Requirements Prepare a complete service cost allocation report with details using the following method: Step-Down Method (Admin Support Costs are allocated first)
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