Kobuk Valley Inc. uses a central copying facility. The copying facility has only two users, Marketing and Operations. The following data apply to the coming budget year and are within the relevant range: Budgeted Data: Fixed costs Variable costs (per copy) Marketing Department Budgeted Copies Operations Department Budgeted Copies Practical Capacity Copies $127,000 $0.07 436,000 295,000 991,000 Actual usage for the year by the Marketing Department was 435,538 copies and by the Operations Department was 244,943 copies. a single-rate supply of capacity based cost-allocation method is used, what amount of copying facility costs will be allocated for he Operations Department?

Kobuk Valley Inc. uses a central copying facility. The copying facility has only two users, Marketing and Operations. The following data apply to the coming budget year and are within the relevant range: Budgeted Data: Fixed costs Variable costs (per copy) Marketing Department Budgeted Copies Operations Department Budgeted Copies Practical Capacity Copies $127,000 $0.07 436,000 295,000 991,000 Actual usage for the year by the Marketing Department was 435,538 copies and by the Operations Department was 244,943 copies. a single-rate supply of capacity based cost-allocation method is used, what amount of copying facility costs will be allocated for he Operations Department?

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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Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments Assembly Finishing $47,000 $70,000 4,600 1,350 43,000 General Factory Receiving $470,000 $190,000 Direct overhead Square footage. Number of receiving orders 2,000 Direct labor hours. 22,000 The company has decided to simplify its method of allocating support service costs by switching to the direct method. Allocation ratios: 300 2,300 4,600 Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar. Use the rounded values for subsequent calculations.
A. The South Department of ABC Corporation is a cost center. The budget for the month of March 20X2 is as follows: Sales salaries 406,725 System support salaries 222, 502 Customer relation salaries 75,975 Accounting salaries 48,345 Depreciation of plant and equipment 45,700 Repairs and maintenance 134,200 Insurance and property taxes 20,245 During March 20X2 the following costs were incurred by South Department: Sales salaries 406,205 System support salaries 222, 450 Customer relation salaries 80,120 Accounting salaries 48,245 Depreciation of plant and equipment 45,700 Repairs and maintenance 138,950 Insurance and property taxes 20,500 REQUIRED: Prepare a performance report for the manager of South Dept for March 20x2. Explain which costs the manager might be expected to request additional reports.
The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year: Budgeted costs of operating the copying facility for 400,000 to 600,000 copies: Fixed costs per year $64,000 Variable costs 5 cents (0.05) per copy Budgeted long-run usage in copies per year: Marketing Department 90,000 copies Operations Department 310,000 copies The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year: Budgeted costs of operating the copying…
The Charmatz Corporation has a central copying facility. Its offices can supply up to 800,000 copies per year. The copying facility has only two users, Department A and Department B. The following data apply to the coming budget year: Budgeted costs of Copy Support Department are: Fixed costs per year $70,000 per year Variable costs $0.02 per copy The operating departments have estimated their usage as follows: Department A 120,000 copies Department B 480,000 copies Actual usage for the year was: Department A 150,000 copies Department B 450,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage is used to allocate costs under the single-rate method. Actual usage is used to allocate variable costs and budgeted usage is used to allocate fixed costs under the dual-rate method. How will…
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Harlow Parts produces a single product at its Superior Plant. The master budget for July follows: Harlow Parts Superior Plant Master Budget (For July) Quantity Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit 8,200 $ 1,558,000 590,400 98,400 $ 869,200 212,000 370,000 $ 287,200 The following operating income statement shows the actual results for July: Harlow Parts Superior Plant Operating Results (For July) Quantity (units) Revenue Variable manufacturing cost Variable Selling, General and Administrative cost Contribution margin Fixed manufacturing cost Fixed Selling, General and Administrative cost Operating profit Required: 9,600 $ 1,760,800 780,394 111,040 $ 869,366 223,040 380,000 $ 266,326 Prepare a profit variance analysis for the Superior Plant for July. (Do not round intermediate calculations. Indicate the effect of each variance by…
Casey Limited, which manufactures a single product, is considering whether to use marginal or absorption costing to report its budgeted profit in itsmanagement accounts. The following information is available: $/unit Direct materials 2 Direct labour 8 10 Selling price 35 Fixed production overheads are budgeted to be $25,000 per month and are absorbed on an activity level of 10,000 units per month. For the month in question, sales are expected to be 8,000 units althoughproduction units will be 10,000 units. Fixed selling costs of $15,000 per month will incurred and the variable selling costs would be $0.20 per unit. There are no opening Inventory. Required:Prepare the budgeted profit and loss account for a month for Casey Limited using absorption costing. Clearly show the valuation of any Inventory figures.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity 8,030,000 pages Budgeted usage: Software Development 1,630,000 pages Training 3,333,000 pages Management 2,127,000 pages Cost equation $310,000 + $0.02 per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Management Department, assuming the Management Department actually made 2,130,000 copies during the year? Multiple Choice $84,670. $86,790. $86,275. $135,600.
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