Leslie Company operates a cafeteria for the benefit of its employees. The company subsidizes the cafeteria heavily by allo employees to purchase meals at greatly reduced prices. Budgeted and actual costs in the cafeteria for the year just ended follows: Variable costs Fixed costs Budgeted $933,165 $366,000 Actual $777,240 $391,000 *Unrecovered cost after deducting amounts received from employees. Costs of the cafeteria are charged to producing departments on the basis of the number of employees in these departmen costs are charged on the basis of the percentage of peak-period requirements. Data concerning the company's producing departments follows: Budgeted number of employees Actual number of employees Percentage of peak-period requirements Machining 465 270 40% Assembly 878 750 60% Total 1,335 1,020 100%

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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Required A Required B
Identify the amount, if any, of actual costs that should not be charged to the operating departments. (Do not round
intermediate calculations.)
Amounts not to be charged
Variable Cost Fixed Cost
< Required A
Required B >
Transcribed Image Text:Required A Required B Identify the amount, if any, of actual costs that should not be charged to the operating departments. (Do not round intermediate calculations.) Amounts not to be charged Variable Cost Fixed Cost < Required A Required B >
Leslie Company operates a cafeteria for the benefit of its employees. The company subsidizes the cafeteria heavily by allowing
employees to purchase meals at greatly reduced prices. Budgeted and actual costs in the cafeteria for the year just ended are as
follows:
Variable costs*
Fixed costs
Budgeted Actual
$933,165 $777,240
$366,000 $391,000
"Unrecovered cost after deducting amounts received from employees.
Costs of the cafeteria are charged to producing departments on the basis of the number of employees in these departments. Fixed
costs are charged on the basis of the percentage of peak-period requirements. Data concerning the company's producing
departments follows:
Budgeted number of employees
Actual number of employees
Percentage of peak-period requirements
Machining
465
270
Amounts to be charged Machining
Variable cost
Fixed cost
40%
Complete this question by entering your answers in the tabs below.
Required A
Required:
a. Compute the dollar amount of variable and fixed costs that should be charged to each of the producing departments at the end
the year for purposes of evaluating performance.
b. Identify the amount, if any, of actual costs that should not be charged to the operating departments.
Assembly
870
750
60%
Total
1,335
1,020
Required A Required B
Compute the dollar amount of variable and fixed costs that should be charged to each of the producing departments at the
end of the year for purposes of evaluating performance. (Do not round intermediate calculations.)
Assembly
Required B >
100%
Transcribed Image Text:Leslie Company operates a cafeteria for the benefit of its employees. The company subsidizes the cafeteria heavily by allowing employees to purchase meals at greatly reduced prices. Budgeted and actual costs in the cafeteria for the year just ended are as follows: Variable costs* Fixed costs Budgeted Actual $933,165 $777,240 $366,000 $391,000 "Unrecovered cost after deducting amounts received from employees. Costs of the cafeteria are charged to producing departments on the basis of the number of employees in these departments. Fixed costs are charged on the basis of the percentage of peak-period requirements. Data concerning the company's producing departments follows: Budgeted number of employees Actual number of employees Percentage of peak-period requirements Machining 465 270 Amounts to be charged Machining Variable cost Fixed cost 40% Complete this question by entering your answers in the tabs below. Required A Required: a. Compute the dollar amount of variable and fixed costs that should be charged to each of the producing departments at the end the year for purposes of evaluating performance. b. Identify the amount, if any, of actual costs that should not be charged to the operating departments. Assembly 870 750 60% Total 1,335 1,020 Required A Required B Compute the dollar amount of variable and fixed costs that should be charged to each of the producing departments at the end of the year for purposes of evaluating performance. (Do not round intermediate calculations.) Assembly Required B > 100%
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