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

6/30/2016 (in thousands) % of % of total Actual revenues quality costs Prevention costs Machine maintenance $430 Supplier training 21 Design reviews 110 Total prevention costs 561 7 % 27 % Appraisal costs Incoming inspections 111 Final testing 327 Total appraisal costs 438 5 % 21 % Internal failure costs Rework 236 Scrap 132 Total internal failure costs 368 4 % 17 % External failure costs Warranty repairs 168 Customer returns 570 Total external failure costs 738 9 % 35 % Total quality costs $2,105 25 % Total revenues $8,280 12/31/2016 (in thousands) % of % of total Actual revenues quality costs $430 112…
Barstow Manufacturing 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: FROM TO Design Support Assembly Finishing Design 0 % 20 % 10 % 70 % Support 10 % 0 % 30 % 60 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design $ 110,000 Engineering Support $ 490,000 Assembly $ 440,000 Finishing $ 700,000 The total cost accumulated in the assembly department using the reciprocal 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): Multiple Choice $2,009,592. $557,551. $612,959. $1,182,449. $1,127,041.
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.
CakeCo, Incorporated has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $14,400 of costs during the period. If allocated maintenance cost is based on floor space occupied by each of the operating departments, compute the amount of maintenance cost allocated to the Baking Department. Department Direct Expenses Square Feet 1,500 2,250 750 Mixing $ 26,000 Baking 20,000 Packaging 14,000 $320. $960. $6,000. $9,450. $7,200. 9
8. Lisa's Automotive Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows: Maintenance Dept. Personnel Dept. Production Dept. A Production Dept. B Standard service hours used 200 200 240 160 Number of employees 10 20 40 120 How much of the cost of the Maintenance Department is allocated to Department B using the direct method? Select one: a. $60,000 b. $32,000 c. $12,800 d. $24,000 e. $16,000
Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 1 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $72,000 $86,400 $108,000 $117,600 Square feet of factory floor space 48,000 96,000 Number of factory workers 110 70 Planned direct labor hours for the year 24,000 36,000 Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do not round bases when calculating reallocations of service departments. Production 1 2 Identifiable and allocated overhead Answer Answer Reallocation of service departments: Dept. 1 Factory floor space Answer Answer Dept. 2 Number of factory workers Answer Answer Total manufacturing overhead Answer Answer What is the apparent…
Ternes Manufacturing produces metal products primarily used in the construction industry. The three main inputs in production are materials (metal), labor, and overhead. Data for the previous three reporting periods follow: Materials cost Labor cost Overhead Value of product produced Period 3 $ 49,000 28,150 41,050 135,930 Period 3 Period 2 Period 1 Period 2 $ 63,500 37,820 46,600 177,504 Period 1 $ 58,750 34, 200 44,850 162, 604 Required: a. Compute the total factor productivity for the previous three reporting periods. Period Total Factor Productivity
Merlin Company provides the following ABC costing information: Activities Total Costs Activity-cost drivers Account inquiry hours $200,000 10,000 hours Account billing lines $140,000 4,000,000 lines Account verification accounts $75,000 40,000 accounts Correspondence letters $25,000 4,000 letters Total costs $440,000 The above activities are used by Departments A and B as follows: Department A Department B Account inquiry hours 2,000 hours 4,000 hours Account billing lines 400,000 lines 200,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,600 letters Required: a. How much of the correspondence costs will be assigned to Department B? b. How much of the total costs will be assigned to Department A?
Carla Vista Industries has three activity cost pools and two products. It expects to produce 2,700 units of Product SZ09 and 1,400 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Carla Vista accumulated the following data relative to those activity cost pools and cost drivers. question: Assign the overhead cost to the two products: SZ09$? and NZ16$?
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $489,600 are allocated on the basis of machine hours. The Accounting Department's costs of $122,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $210,000 and $410,000, respectively. Maintenance Accounting A B Machine hours 895 80 2,400 320 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method? Note: Do not round intermediate calculations.
Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 72,000 0.70 0.10 0.20 S2 $ 157,000 0.20 0.30 0.50 P1 $ 214,000 P2 $ 179,000 Under the step method of allocation, the total amount of service costs allocated to producing departments would be: Multiple Choice $174,000. $178,600. $74,000. $229,000.
Eccles 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: Costs: Wages and salaries $ 349,000 Depreciation 290,000 Utilities 199,000 Total $ 838,000 Distribution of resource consumption: Activity Cost Pools Total Assembly Setting Up Other Wages and salaries 65% 20% 15% 100% Depreciation 35% 20% 45% 100% Utilities 15% 75% 10% 100% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool? Multiple Choice $125,700 $544,700 $345,533 $358,200