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: SERVICES PROVIDED TO Support 10% 0% 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 O O The total cost accumulated in the finishing 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): OOO $1,057,333 $1.970,000. $712.667. $664,792 Design 0% 20% $980,208. $ 180,000 $ 160,000 $ 570,000 $ 860,000 Assembly 30% 45% Finishing 60% 35%

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: SERVICES PROVIDED TO Support 10% 0% 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 O O The total cost accumulated in the finishing 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): OOO $1,057,333 $1.970,000. $712.667. $664,792 Design 0% 20% $980,208. $ 180,000 $ 160,000 $ 570,000 $ 860,000 Assembly 30% 45% Finishing 60% 35%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

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
Product Design
Engineering Support
Assembly
Finishing
Multiple Choice
O
The direct operating costs of the departments (including both variable and fixed costs) were as follows:
$1.057.333.
O $1,970,000.
O $712,667.
O
The total cost accumulated in the finishing 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):
Design
0%
20%
$664,792.
$980,208.
SERVICES PROVIDED TO
$ 180,000
$ 160,000
$570,000
$ 860,000
Support
10%
0%
Assembly
30%
45%
Finishing
60%
35%

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