Flint Industries operates two support departments, Personnel and Accounting, and two producing departments, Fabrication andAssembly. Information on the support percentages and cost for each department is as follows:PersonnelAccountingFabricationAssemblyPersonnelO $12262.O $12453.O $11368.O $12378.0%10%35%55%Accounting6%0%55%39%OperatingCosts$1600010200108500100000Using the reciprocal method of allocating support costs, what is the total cost allocated to the Fabrication Department from the twosupport departments?

Lets understand the basics. There are various methods through which service department costs are…

Flint Industries operates two support departments, Personnel and Accounting, and two producing departments, Fabrication and Assembly. Information on the support percentages and cost for each department is as follows: Personnel Accounting Fabrication Assembly Personnel 0% 10% 35% 55% Accounting 6% 0% 55% 39% Operating Costs $16000 10200 108500 100000

Flint Industries operates two support departments, Personnel and Accounting, and two producing departments, Fabrication and Assembly. Information on the support percentages and cost for each department is as follows: Personnel Accounting Fabrication Assembly Personnel 0% 10% 35% 55% Accounting 6% 0% 55% 39% Operating Costs $16000 10200 108500 100000

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

Dierich Company uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Manufacturing overhead $600,000 Selling and administrative expenses 220,000 Total $820,000 Distribution of Resource Consumption: Activity Cost Pools Order Size Customer Support Other Total Manufacturing overhead 15% 75% 10% 100% Selling and administrative expenses 60% 20% 20% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. You have been asked to complete the first-stage allocation of costs to the activity cost pools. How much cost, in total, would be allocated in the first-stage allocation to the Order Size activity cost pool? Multiple Choice $123,000 $222,000 $307,500 $492,000
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Activity Rates 2$ 6 per direct labor-hour $4 4 per machine-hour 24 50 per setup 90 per order 2$ Shipments Product sustaining 14 per shipment $ 840 per product Activity data have been supplied for the following two products: Total Expected Activity К425 М67 Number of units produced per year 200 2,000 Direct labor-hours 80 500 Machine-hours 100 1,500 Machine setups Production orders Shipments Product sustaining 1 4 1 4. 1. 10 1 1
A
XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 228,060 18,000 machine-hours Processing orders $ 34,068 1,600 orders Inspection $ 125,560 1,720 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system, the average cost of product YBY is closest to: O a. $94.26 per unit O b. None of the given answer is correct. Oc $94.00 per unit O d. $95.77 per unit O e $93.99 per unit CLEAR MY CHOICE
ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 Number of copies made Accounting 500,000 Number of invoices processed Personnel 400,000 Number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows: Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 Et 700 130 800 145 500 125 The support department allocation rate for the Personnel Department is O a. $3,200 O b. $2,758 O c. $1,000 O d. $3,077
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Activity Rates Supporting direct labor $ 8 per direct labor-hour Machine processing $ 4 per machine - hour Machine setups $ 40 per setup Production orders $ 150 per order Shipments $ 120 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Total Expected Activity K425 -M67 Number of units produced per year 200 2,000 Direct labor-hours 925 40 Machine - hours 2, 600 30 Machine setups 11 1 Production orders 11 1 Shipments 22 1 Product sustaining 1 1
A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Production Dept. Service Cost Center Supervision Maintenance Occupancy Dept.1 Dept. 2 Supervision Equipment maint. Building occunpany 10% Direct costs in the various departments are as follows: 10% 5% 40% 45% 45% 55% 10% 35% 45% Direct Cost P 35,000 Label si S2 Department Supervision Équipment maintenance Building occupancy Production Dept. No. 1 Production Dept. No. 2 If the direct method of allocation is used, how much of the supervision departinent's eost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision) 30,000 90,000 350,000 450,000 S3 PI P2 а. 0 b. P1,750 с. Р3,500 d. P5,250
Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Machine processing Machine setups Activity Rate $7 per direct labor-hour $4 per machine-hour $ 45 per setup Production orders. $ 160 per order Shipments $ 130 per shipment Product sustaining $ 900 per product Activity data have been supplied for the following two products: Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments Product sustaining Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead cost $ K425 Total Expected Activity K425 M67 2,000 0 $ 200 1,000 3,000 5 5 Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? M67 10 1 30 20 1 1 0 1 1
Borden Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Overhead Costs: Indirect labor $ 245,000 Depreciation 205,000 Utilities 137,000 Total $ 587,000 Distribution of resource consumption: Activity Cost Pools Assembly Setting Up Other Total Indirect labor 55 % 20 % 25 % 100 % Depreciation 25 % 35 % 40 % 100 % Utilities 20 % 40 % 40 % 100 % How much overhead cost, in total, would be allocated to the Setting Up activity cost pool?
1. X Company uses activity-based costing for Product B and Product D. The total estimated overhead cost for the parts administration activity pool was $550,000 and the expected activity was 2000 part types. If Product D requires 1200 part types, the amount of overhead allocated to product D for parts administration would be: a) $275,000 b) $300,000 c) $330,000 d) $345,000
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates: Activity Cost Pool Labor-related Machine-related Machine setups Production orders. Shipments General factory Activity Rates $ 7.00 per direct labor-hour $ 4.00 per machine-hour $50.00 per setup $ 100.00 per order $ 150.00 per shipment $ 4.00 per direct labor-hour Cost and activity data have been supplied for the following products: Direct materials cost per unit Direct labor cost per unit 378 $ 3.00 $ 3.00 B52 $ 20.00 $ 6.00 2,000 100 Number of units produced per year Total Expected Activity 378 B52 Direct labor-hours. 1,000 20 Machine-hours 2,000 50 Machine setups 6 3 Production orders 5 3 8 3 Shipments Required: Compute the unit product cost of each product listed above. (Do not round intermediate calculations. Round your answers to 2 decimal places.) J78 B52 Unit product cost
The estimated departmental manufacturing for producing department A and B and the estimated costs of service departments C, D, and E (before any service department allocations) are: Producing Department Service Department A B P120,000 180,000 P40,000 40,000 20,000 D E The interdependence of the departments is as follows: Services Provided by Department Producing A Producing B Service C Service D Service E Marketing General office D E 30% 40% 50% 40 30 20 20 10 20 10 100% 100% 100% Compute the final amount of estimated overhead of Service E after reciprocal transfer costs have been calculated algebraically. After computing the total factory overhead of each producing department and what amount of DepartmentE cost is assigned to Marketing Department?