Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $146,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 321,000 492,200 256,800 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? Note: Do not round your intermediate calculations. Department 1 Sales Percent of Total Cost Allocated % 2 % 3 % Total $ 0 0.00 % $ 0

Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $146,000. Sales for its operating departments follow. Department 1 2 3 Sales $ 321,000 492,200 256,800 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? Note: Do not round your intermediate calculations. Department 1 Sales Percent of Total Cost Allocated % 2 % 3 % Total $ 0 0.00 % $ 0

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $108,000. Sales for its operating departments follow. Department 2 Sales $ 272,500 523, 200 294,300 How much advertising cost is allocated to each operating department If the allocation is based on departmental sales? (Do not round your intermediate calculations.) Department Sales Percent of Total 1 2 3 Total % % % % Cost Allocated
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A company has two departments, Y and Z that incur advertising expenses of $19,000. Advertising expenses are allocated based on sales. Department Y has sales of $300,000 and Department Z has sales of $700,000. The advertising expense allocated to Departments Y and Z, respectively, are: Multiple Choice O O O $5,700; $13,300. $13,300; $5,700. $8,200; $10,800.
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T, and U, and pays for general advertising that benefits all departments. Advertising expense totaled $82,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. (Do not round your intermediate calculations. Round the answer to the nearest whole dollar, i.e. 17,525.69 would be 17,526): Sales per department Department Sales S $ 106,000 T 215,250 U 149,150 Total $ 470,400
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Account Activity and Relationships Each case is independent. Solve for missing data in alphabetical order. (Hint: Refer to Exhibit 18.6, p. 18-17 and the WIP table, p. 18-25.) Case A Case B Case C Case D Sales $425,000 Answer 550,000 Answer Direct materials 75,000 105,000 Answer 105,000 Direct labor 25,000 Answer 100,000 Answer Total direct costs Answer 160,000 Answer 150,000 Conversion cost Answer 130,000 Answer Answer Manufacturing overhead 40,000 Answer 50,000 Answer Current manufacturing costs Answer Answer 475,000 395,000 Work in process, beginning 35,000 50,000 Answer 105,000 Work in process, ending 25,000 Answer 105,000 Answer Cost of goods manufactured Answer 160,000 Answer 410,000 Finished goods inventory, beginning 45,000 40,000 35,000 60,000 Finished goods inventory, ending 30,000 Answer 40,000 Answer Cost of goods sold Answer 175,000 Answer 400,000 Gross profit…
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