Gant Accounting performs two types of services, Audit andTax. Gant's overhead costs consist of computer support,$303000; and legal support, $151500. Information on thetwo services is:TaxAudit$50000 $100000Direct labor cost1000040000CPU minutes800200Legal hours usedOverhead applied to tax services using activity-basedcosting isO $272700.O $151500.O $181800.O $303000.ip

Calculate activity cost per base:

Answered: Gant Accounting performs two types of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Crane incurred the following costs while manufacturing its product: Materials used in production, $144000; factory depreciation, $84000; property taxes on the administrative offices, $36000; labor costs of assembly-line workers, $119000; factory supplies used, $32000; advertising expense, $37000; property taxes on the factory, $44000; delivery expense, $47000; salaries of the sales staff, $77000; and sales commissions, $41000. The total product costs for Crane are O $583000. O $459000. O $661000. O $423000. Toxtbook and Media
2.
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Total Salaries $ 39,000 Allocation Basis Number of employees Depreciation 29,000 Cost of goods sold Advertising 68,000 Percentage of total sales Department Number of employees Drilling Grinding Total 1,800 2,700 4,500 Sales $368,000 552,000 $ 920,000 Cost of goods sold $ 121,600 198,400 $ 320,000 The amount of salaries that should be allocated to Grinding for the current period is:
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Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office exApenses are alocated to the tavo opertng cene different allocatlon bases. The following Information is avallable for the current period: Office Expenses Salaries Total Allocation Basis Number of employees 44,000 Depreciation Advertising 21,000 Cost of goods Bold 44,000 Percentage of total sales Department Drilling Grinding Number of employees Sales Cost of goods sold 900 $ 350,000 $ 91,200 2,100 525,000 148,800 Total 3,000 $ 875,000 $ 240,000 The amount of depreciation that should be allocated to Drilling for the current period is: Multiple Choice $7,980. $13,020. $21,000. 8 of 25
All products at Luke Corp. are allocated a portion of corporate overhead costs, which is computed as a percent of product revenue. The percentage rate is based on the level of corporate costs as a percentage of revenues. Data on corporate costs and revenues for the past two years were stated as: Corporate Revenue Corporate Overhead Costs Most recent year $ 112,750,000 $ 10,237,500 Previous year $ 76,200,000 $ 7,921,000 Using the data in the table apply the high low method (based on revenues) to determine the variable corporate overhead costs per sales dollar. Round to the nearest 0.001.
Required information Sunrise Accounting provides basic tax services and "rent-a-controller" accounting services. Sunrise has identified three activity pools, the related costs per pool, the cost driver for each pool, and the expected use for each pool. Activity Transportation costs Electronic processing office support Activity Transportation costs Electronic processing Office support Total overhead assigned Total Activity Cost Cost Driver $50,000 Mileage $ 75,000 Processing hours $ 20,000 Administrative hours. Required: Barry Gold, a tax client of Sunrise Accounting, requires 20 miles of transportation, 50 hours of processing time, and 3 hours of office support, determine the amount of overhead assigned to Barry Gold. Note: Round your intermediate calculations to 2 decimal places and your final answers to the nearest dollar amount. Allocated Overhead $ Expected Tax Services Usage 5,000 miles 20,000 hours 3,500 hours Expected Controller Services Usage 35,000 miles 30,000 hours 1,500…
Gant Accounting performs two types of services, Audit and Tax. Gant’s overhead costs consist of computer support, $336000; and legal support, $168000. Information on the two services is: Audit Tax Direct labor cost $50000 $100000 CPU minutes 40000 10000 Legal hours used 200 800 Overhead applied to tax services using traditional costing is $336000. $168000. $201600. $302400.
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $40,000 Number of employees Depreciation Advertising 26,000 Cost of goods sold 60,000 Net sales Item Drilling Grinding Total Number of employees 1,800 2,700 4,500 Net sales $352,000 $528,000 $880,000 Cost of goods sold $110,200 $179,800 $290,000 The amount of depreciation that should be allocated to Grinding for the current period is: Multiple Choice $37,200. $26,000.
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office Expenses Total Allocation Basis Salaries $42,000 Number of employees Depreciation Advertising 26,000 Cost of goods sold 58,000 Net sales Item Drilling Grinding Total Number of employees 1,960 $344,500 $ 93,000 4,900 $848,000 $248,000 2,940 $503,500 $155,000 Net sales Cost of goods sold The amount of the total office expenses that should be allocated to Grinding for the current period is (Do not round your intermediate calculations.)

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