Maple Industries allocates its HR department costs of $280,000 to its manufacturing and research departments using the direct method based on the number of employees. Employee information is as follows: Department | Employees HR | 6 Manufacturing | 45 Research | 25 How much of the HR department costs will be allocated to the manufacturing department?

Maple Industries allocates its HR department costs of $280,000 to its manufacturing and research departments using the direct method based on the number of employees. Employee information is as follows: Department | Employees HR | 6 Manufacturing | 45 Research | 25 How much of the HR department costs will be allocated to the manufacturing department?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?
Objective: Consider that you are an analyst at Regeneron Pharmaceuticals. You need to decide how to allocate administrative overhead costs to Regeneron's main commercial products (Eylea, Dupixent, Kevzara and Praluent). Determine how to appropriately allocate the costs in the table below to each of the commercial products using an allocation methodology of your choice. Department2019 Annual Operating ExpenseTime spent supporting Commercial productsCommercial$200MM100%IT$100MM25%Facilities$150MM0%Finance$25MM20%Human Resources$75MM10% Use the supporting document Net Product Sales of REGN Products to facilitate your analysis. Provide a written summary of how you allocated the overhead costs to each product in an outline of no more than one page. As a starting point, it's recommended that you revisit the material we covered in Chapter 12. Guidance on calculations:Start off with Net Product Sales of REGN Products. Your objective pertains to 2019 expenses, so you should be reviewing 2019…
Andreka Inc. uses the direct method to allocate support department costs to production departments (fabricating and finishing). Information for June follows. Human Resources Administration Service department costs $1,134,000 $810,000 Services provided to other departments Human resources 10% Administration 20% Fabricating 35% 50% Finishing 45% 40% a. What amounts of human resources and administration costs should be assigned to Fabricating for June? $______ b. What amounts of human resources and administration costs should be assigned to Finishing for June? $______
Smeltzer uses the Direct Method to allocate support department costs. The Service Departments are HR and Custodial services. Production Departments are Fabrication and Assembly. Initial cost distributions to each department are as follows: HR = $240,000; Custodial = $620,000; Fabrication = $1,400,000 and Assembly = $890,000. %3D %3D HR Custodial Fabrication Assembly. Square feet 600 1,000 5,000 3,000 Реople 15 30 22 Smeltzer uses # people as cost driver for HR and square footage for Custodial costs. What will be the total costs for the Assembly Department after all service department costs are allocated? $1,198,000 $1,952,000 $1,143.750 $1,167,750
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Brant Consulting designs costing and transfer pricing system for its clients. Here is a summary of volume, revenue, and cost expectations for the upcoming year: Item Costing Projects Per Per Unit 75 Jobs Total Unit 50 Jobs $10,000 $500,000 $15,000 $1,125,000 $1,625,000 4,500 225,000 11,500 862,500 1,087,500 Contribution margin $5,500 $275,000 $3,500 $262,500 $537,500 Fixed cost 473,000 Profit $64,500 Assume a constant sales mix. (a) How many Costing systems must Brant Consulting sell to breakeven? How many Transfer Pricing systems must Brant Consulting sell to breakeven? (b) How many Costing systems must Brant Consulting sell to achieve a target profit of $86,000? How many Costing systems must Brant Consulting sell to achieve a target profit of $86,000? Transfer Pricing Projects Revenue Variable cost Firm X X X x Round up the total number of systems before determining the allocation between Costing and Transfer Pricing.
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Extreme Manufacturing Company provides the following ABC costing information: Activities Account inquiry Account billing Account verification accounts Correspondence letters Total costs S This question: 25 point(s) possible Total Costs $140,000 $105,000 $173,250 $39,000 $457,250 Activity-cost drivers 14,000 hours 7,000,000 lines 70,000 accounts 6,000 letters The above activities are used by Departments A and B as follows: Department A 5455L OA. $104,125 OB. $89,125 OC. $141,450 OD. $84,175 Department B
The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Labor-Hours Required(hours/unit) Department Product 1 Product 2 Hours Available A 1.00 0.35 95 B 0.30 0.20 36 C 0.20 0.50 50 Profit contribution/unit $30.00 $15.00 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 Production (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for…
Pan & Smith LLP, a consulting firm, uses an activity-based costing in which there are three activity cost pools. The company has provided the following data concerning its costs and its activity-based costing system: Costs: Wages and Salaries Travel Expenses Other Expenses $540,000 $100,000 $140,000 $780,000 Total Distribution of Resource Consumption: Activity Cost Pools Working On Business Engagements Development Other 20% 30% 25% Total 100% Wages and salaries 50% Travel expenses Other expenses 30% 10% 40% 60% 100% 35% 100% a. How much cost, in total, would be allocated to the "Working on Engagements" activity cost pool? b. How much cost, in total, would be allocated to the "Business Development" activity cost pool? c. How much cost, in total, would be allocated to the "Other" activity cost pool?