Figure Joint Costs $472,400 Peanuts Department Processing of 160,000 lb Separable Costs 44,000 pounds Salting Department Processing $36,000 Salted Peanuts 44,000 pounds $9/lb 14,000 pounds Splitoff Point Paste Department Processing $11,000 Raw Peanuts 90,000 pounds $6/lb Peanut Butter 14,000 pounds $8/lb i Requirements 1. 2. Compute unit costs per pound for products A, B, and C, treating C as a byproduct. Use the NRV method for allocating joint costs. Deduct the NRV of the byproduct produced from the joint cost of products A and B. Compute unit costs per pound for products A, B, and C, treating all three as joint products and allocating joint costs by the NRV 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     Cost Driver Janitorial Department   Square footage to be serviced Cafeteria Department   Number of employees     JanitorialDepartment CafeteriaDepartment CuttingDepartment AssemblyDepartment Department costs $310,000        $169,000     $1,504,000      $680,000     Square feet 50        5,000         1,000      4,000     Number of employees 10        3     30      10     Allocated the support department costs to the production departments using the direct method below.   CuttingDepartment   AssemblyDepartment Janitorial Department cost allocation $62,000   $248,000 Cafeteria Department cost allocation $126,750   $42,250 Allocated the support department costs to the production departments using the reciprocal services method below.…

Sales volume (units) Revenue Variable costs Direct materials Direct labor Contribution margin Fixed costs Profit $30,000 $2.00 $45,000 Use direct labor dollars as the cost driver. Compute allocated fixed costs for Product X: O $20,000 Product X 400 $60,000 $50,000 $25,000 $15,000 $20,000 Product Y 600 $60,000 $15,000 $10,000 $35,000 Total 1,000 $120,000 $40,000 $25,000 $55,000 $50,000 $5,000

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

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Multiple Choice $0. $10,444. $8,000. $8,000.

Departmental Cost Allocation Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service depart- ment's efforts (in percentages) to the other departments is: To From S1 S2 P1 P2 S1 10% 20% ?% S2 10% 30 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $180,000 S2 60,000 P1 50,000 P2 120,000 Required 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method.

Contribution margin $ 26, 100 $ 10, 600 $ 25, 400 Fixed costs allocated to each product line 10, 980 15, 840 21, 360

Support department cost allocation-sequential 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 Cost Driver Square footage to be serviced Janitorial Department Cafeteria Department Number of employees Janitorial Department Cafeteria Department Department costs $310,000 $169,000 Square feet Number of employees 50 10 5,000 3 Cutting Department $1,504,000 1,000 Assembly Department $680,000 4,000 30 10 Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first. Janitorial Department Cafeteria Department $ Cutting Department Assembly Department

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