Karen Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurredthree shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow.Indirect ExpenseAllocation Base$ 82,000 Number of employees59,000 Square feet occupied27,000 Value of assets in useCostSupervisionUtilitiesInsuranceTotal$168,000Departmental data for the company's recent reporting period follow.DepartmentMaterialsEmployeesSquare Feet66,5009,50095,00019,000Asset Values58$10,3504,14038,64015,870Personnel8ManufacturingPackaging7064Total200190,000$69,0001. Use this information to allocate each of the three indirect expenses across the four departments.2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments.Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare a summary table that reports the indirect expenses assigned to each of the four departmehts.Supervision Utilities InsuranceTotalMaterials$PersonnelManufacturingPackagingTotals2$0 $0 $< Required 1Required 2 >%24

Indirect cost is the cost which is not related to the product directly. It is the cost incurred for running a business. Thus, cannot be directly related to the product. It can either be variable or fixed in nature.WORKINGS RESULT

Business

Accounting

Karen Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. Indirect Expense Allocation Base $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Value of assets in use Cost Supervision Utilities Insurance Total $168,000 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Employees Square Feet 66,500 9,500 95,000 19,000 Asset Values $10,350 4,140 38,640 15,870 58 70 64 Total 200 190,000 $69,000 1. Use this information to allocate each of the three indirect expenses across the four departments. 2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials $ Personnel Manufacturing Packaging Totals $ 0 $ 24 < Required 1 Required 2>

Karen Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. Indirect Expense Allocation Base $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Value of assets in use Cost Supervision Utilities Insurance Total $168,000 Departmental data for the company's recent reporting period follow. Department Materials Personnel Manufacturing Packaging Employees Square Feet 66,500 9,500 95,000 19,000 Asset Values $10,350 4,140 38,640 15,870 58 70 64 Total 200 190,000 $69,000 1. Use this information to allocate each of the three indirect expenses across the four departments. 2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a summary table that reports the indirect expenses assigned to each of the four departments. Supervision Utilities Insurance Total Materials $ Personnel Manufacturing Packaging Totals $ 0 $ 24 < Required 1 Required 2>

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

Pina Colada's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $274400, $148500, and $74400, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 What amount of costs would be allocated from the HR department to the other support departments (Acct and Admin) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.) O $7802. O $5887. O $7493. O $0.
Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departmen organized according to the special industry each department serves, are health care, retail, and legal services. The billing depart supports only the three operating departments, but the human resources department supports all operating departments and th billing department. Other relevant information follows. Number of employees Annual cost* Annual revenue Req A1 Billing Human Resources 10 $720,000 $1,428,000 $6,000,000 Department Req A2 Health Care Retail Legal Services Total Complete this question by entering your answers in the tabs below. Req B1 *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company the number of employees as the base for allocating human resources department costs and department annual revenue as…
Cost flow relationships The following information is available for the first year of operations of Creston Inc., a manufacturer of fabricating equipment: Sales $ 12,910,000 Gross profit 5,424,800 Indirect labor 427,700 Indirect materials 187,800 Other factory overhead 845,000 Materials purchased 4,303,300 Total manufacturing costs for the period 8,220,700 Materials inventory, end of period 302,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Denger
The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. Operating costs No. of purchase orders Sq. ft. of space Multiple Choice O $6,400. $9,900. $8,100. $9,000. $25,600. Purchasing Maintenance Fabrication Assembly $32,000 $18,000 $96,000 16 3,300 $62,000 4 2,700
Assume a company provided the following information: Departmental costs Number of employees Square feet of space occupied Multiple Choice If the company (1) uses the direct method to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to: C $58,338. $63,467. $76,800. Service Departments Operating Departments Cafeteria Janitorial Lab Tech $232,000 $950,000 32 68 $240,000 $140,000 20 2,000 11,000 9,000 $116,800. 10 3,000
Gadubhai
Vikrambhai
General Printing Company has three service departments and two operating departments. Selected data for the five departments relating to the most recent period follow: Service Departments Training Janitorial Maintenance "$96,000 Operating Departments Litho $534,000 Offset Printing Direct Overhead costs $400,000 $210,000 $ 400,000 Number of employees Square metres of space occupied 120 70 280 630 420 1,000 2,000 4,000 8,000 40,000 20,000 60,000 Number of Machine-hours The company allocates service department costs in the following order and using the bases indicated: Training (number of employees), Janitorial (Space Occupied) and Maintenance (hours of press time). REQUIRED: Prepare a schedule, in good format, allocating the service departments' costs using the Step Method.
Pronghorn's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $258900, $147700, and $70800, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 What are the total costs allocated from the accounting department to the operating units? (Do not round the intermediate calculations.) O $0. O $275878. O $273926. O $264975.
Cheyenne's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $271000, $158300, and $68800, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.) O $280035. O $282405. O $256681. O $0.