Provide correct option Horizon Industries has a partially completed departmental expenseallocation spreadsheet that reports the total amounts of direct andindirect expenses for its four departments. The purchasingdepartment expenses are allocated to the operating departmentsbased on total purchases made by each.Given the following data:• Total Purchasing Department expenses: $48,000Purchases by Department A: $120,000• Purchases by Department B: $80,000Purchases by Department C: $100,000Calculate the amount of Purchasing Department expenses allocatedto Department C.A) $14,400B) $16,000C) $18,000D) $20,000

Step 1: Definition of Departmental Expense AllocationDepartmental expense allocation is the process…

Answered: Horizon Industries has a partially…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 5SEA: COMPUTING OPERATING INCOME The sales, cost of goods sold, and total operating expenses of...

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1)PLEASE ANSWERED WITH IN THE FORMAT BY PROVIDING FORMULA IN DETAILS2)PLEASE PROVIDE ANSWER IN TEXT Divisional income statement with support department allocations Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments, tech services and purchasing.The corporate expenses for the year ended December 21, 20Y7, are as follows:
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In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $48,024, and the Purchasing Department had expenses of $22,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Line Item Description Residential Commercial Government Contract Sales $460,000 $609,000 $1,399,000 Number of employees: Weekly payroll (52 weeks per year) 110 85 90 Monthly payroll 30 41 28 Number of purchase requisitions per year 2,100 1,500 1,400 Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Line Item Description Residential Commercial…
1. Using the data below for Ace Guitar Company: Region A Region B Sales $571,500 $698,500 Cost of goods sold 217,200 265,400 Selling expenses 137,200 167,600 Service department expenses Purchasing $213,400 Payroll accounting 142,200 Allocate service department expenses proportionally to the sales of each region, determine the divisional income from operations for the Regions A and B. For interim calculations, round the percentages to one decimal place. Region A $ Region B $
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Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments, Tech Services and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: The other corporate administrative expenses include officers salaries and other expenses required by the corporation. The Tech Services Department allocates costs to the divisions based on the number of computers in the department, and the Purchasing Department allocates costs to the divisions based on the number of purchase orders for each department. The services used by the two divisions are as follows: The support department allocations of the Tech Services Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Prepare the divisional income statements for the two divisions.
Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?
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Cost Department Allocations In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $41,808, and the Purchasing Department had expenses of $17,690 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial Government Contract Sales $ 370,000 $ 490,000 $ 1,125,000 Number of employees: Weekly payroll (52 weeks per year) 220 75 80 Monthly payroll 36 47 34 Number of purchase requisitions per year 2,600 1,800 1,700 Required: a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Residential Commercial…

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