AMaintenanceStores%2420,00040,67060,670Allocated costs (from Section 4.1)General costs (from Section 4.2.2)15,00078,03093,03012,00022,84034,8405,00013,66018,660Service departments' services were used as follows.MaintenanceStoresTotalMaintenance hours usedNumber of stores requisitions5,0003,0004,0001,0001,00010,0005,0001,000RequiredUsing the data provided prepare an analysis showing the distribution of overhead costs to departments.Reapportion service cost centre costs using the reciprocal method.Apportion the service department overhead costs using the step down method of apportionment, startingwith the stores department.Calculate the total production overhead costs of Departments A and B using the direct method ofreapportionment.

Answered: Image /qna-images/answer/a4cc6bbd-cf8c-480b-8e66-619cc9a041b6.jpg

Maintenance 24 Stores Allocated costs (from Section 4.1) General costs (from Section 4.2.2) 15,000 78,030 93,030 20,000 40,670 60,670 12,000 22,840 34,840 5,000 13,660 18,660 Service departments' services were used as follows. A B Maintenance Stores 1,000 Total 10,000 5,000 Maintenance hours used 5,000 3,000 4,000 1,000 Number of stores requisitions 1,000 Required

Maintenance 24 Stores Allocated costs (from Section 4.1) General costs (from Section 4.2.2) 15,000 78,030 93,030 20,000 40,670 60,670 12,000 22,840 34,840 5,000 13,660 18,660 Service departments' services were used as follows. A B Maintenance Stores 1,000 Total 10,000 5,000 Maintenance hours used 5,000 3,000 4,000 1,000 Number of stores requisitions 1,000 Required

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

Prod 1 Prod 2 Stores dept Maintenance dept Overhead costs $ 24,000 16,000 10,000 8,000 Cost of material requisitions 40,000 35,000-15,000 M'nance hours needed (hrs) 8,000 4, 500 1,500 Required: a) Use the repeated distribution method to apportion the overhead costs of the two service ceritres b) Ascertain the total overhead costs of the production departments c) Compare the overall cost of the production departments using the repeated distribution method and the traditional overhead absorption method, d) Comment on the benefits or drawbacks of using the repeated distribution method of overhead absorption
Haresh
10-44. Resources Used versus Resources Supplied The Purchasing Department at Arnold & Daughters reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used 24 Material testing Material procurement. Resources supplied Material testing Material procurment. 43 per test 2,000 tests %$4 600 per order 500 orders $100,000 $340,000 Required Compute unused resource capacity in the Purchasing Department at Arnold & Daughters.
Division Accounting Personnel Information Technology Sales Production 8. 9. 10. 90 Number of Employees No Shows Pald (Non- Cancellations Registrations Attended refundable) (Refundable) 50 26 14 (I) 208 150 185 TRAINING ATTENDANCE AND RELATED COSTS BY DIVISION TRAINING ATTENDANCE C. $40,000. D. $41,600. 81 156 102 157 The value of (III) is A. $31,200. B. $32,448. The value of (IV) is A. $6,525. B. $7,050. C. $9,225. D. $9,450. 6 28 31 23 3 24 17 5 Attendance Ratio of Those Registered 0.52 0.90 (II) Adjusted Cost per Total Cost per Salary Registration Registration Cancellation Training Registration (5) (5) Payment (5) Refunds ($) Cost (5) (5) 6,700 100 5,000 1,000 10,700 268 2,700 225 (IV) 47,200 6,000 0.85 4,625 0.75 10,400 200 75 The value of (V) (rounded to the nearest whole dollar) is A. $71. B. $83. C. $86. D. $98. RELATED COSTS Registration Cost 140 60 6,750 (III) 21,000 11,100 4,800 106 257 185 2,380 24,620 300 15,425 (V)
Vishnu
Management and Allocation Assignm... i) Saved Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Direct Costs $120,000 76,000 54,000 37,000 Maintenance Machining Assembly Department Machining Assembly Maintenance Cafeteria Cafeteria 0.6 0.2 0.2 0.1 0.2 0.7 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations.) To Cafeteria Machining Assembly From Maintenance…
Department Personnel Custodial Services Maintenance Printing Binding Personnel Custodial Services Maintenance Printing Binding Total budgeted cost Total Labor- Square Feet of Space Occupied Printing Department Binding Department Total hours Hours 16,000 8,200 14,300 30,600 108,000 177,100 Budgeted overhead costs in each department for the current year are shown below: $ 300,000 66,000 93,400 Req 1 Req 2 12,400 3,100 10,500 40,400 20,900 87,300 Machine-Hours 2,400 500 2,900 414,000 170,000 $ 1,043,400 Number of Employees 22 49 69 Req 3A 105 300 545 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Machine- Hours Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the…
Answer question D
3 ences Complete the following (assume $90,000 of overhead to be distributed): Note: Round the "Ratio" to 2 decimal places. Mc Graw Hill Department A Department B Square Feet -- 10,000 30,000 Ratio < Prev Amount of Overhead Allocated 9 of 10 ⠀ JUL 30 W Next E 4 R *** 6 A 8
Required information SB (Static) The following information is... [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Cost $ 30,000 20,000 100,000 150,000 Total Cost Allocated S1 0% 20 P2 35% 20 60 Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3] What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $100,000 to $120,000? 52 P1 30% 35% 0