Chapter)254Numbers 10 to 21 are based on the following data:serviceannualdepartments to the producing departments on the basideavailable:betterthat maintenance and engineering service hours be usedservice cost allocation basis. The following data wasProducing DepartmentsDept. BService DepartmentsDept. ADept. CMaintenance Engineering400Maintenance hoursEngineering hoursOverhead costs800800200400P90,000200400P50,000400P80,000P54,000P12,000p0ol method)whot 16. Under the direct method of cost allocation, what amount ofEngineering Department's cost would be allocated to DepartmentA?a. P20,800b. P27,000C. P54,000d. P -0-1. Under the step method of cost allocation, what amount of MaintenanceDepartment's cost is allocated to Engineering Department?a. P1,500b. P6,000c. P3.000d. P 0-

The cost of service departments can be allocated to various production departments using various…

Answered: mbers 10 to 21 are be JGG Company has…

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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MANUFACTURNG OVERHEADS Thumamina Limited manufactures various produds that are produced in two production departments: Department Q and Department V. In addition to these two production departments, the company has a service department, which provides support to the production departments. The following additional information is available: Department Q Department V Service department Number of employees 150 100 Floor space 2050 m 1250 m2 1100 m2 Value of machinery R900 000 R300 000 R250 000 Kilowatt hours 1300 1000 400 Labour hours 5000 4 000 150 Machine hours 4 000 2 000 100 The budgeted manufacturing overheads for 2018 are as follows: Rent of building R1010 000 Electricity R95 000 Depreciation of machinery (based on machine hours) R230 000 Salaries of supervisors R380 500 Insurance buildings (based on value of machinery) R150 755 Indirect material: Department Q R88 000 Department V R35 000 Service department R27 000 Required Calculate the primary allocation of overheads per…
Indicator ' A 16 17 18 19 20 (1) $126,000 105,000 84,000 $200,000 D (2) $150,000 128,000 22,000 $138,000 E 1 2 Required: 3 Determine the missing amount for each separate situation involving work in process cost flows. 4 5 6 Total manufacturing costs 7 Work in process inventory, beginning 8 Work in process inventory, ending 9 Cost of goods manufactured 10 11 12 13 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 14 Nothing in this area will be graded, but it will be submitted with your assignment. 15 (3) $217,000 32,000 185,000 $237,000 F G H 1 J
Period Ccb Home | bartl... of 15 ! 2 Required information [The following information applies to the questions displayed below.] my.post.edu... X 9- Unit 1 - C... Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Total fixed manufacturing cost Okay 3 9. If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production? 4 5 G what is the h... Init 1 - C... CO 6 7 Average Cost per Unit $ 7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 You 8 9 0 ct de
M Thu Sep 8 t 14 of 15 AA Period Ce b Home | bartl... 23 my.post.edu... X 14 Unit 1-... 14 rint ezto.mheducation.com A Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 5 Total direct manufacturing cost Total indirect manufacturing cost Okay C Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: G what is the h. Average Cost per Unit $ 7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 14. If 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.) @ 29% 4 + 88 Init 1-C... You a
Sh51
27-28
Homework/2020 Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Allocated Costs Allocation Base Account inquiry (hours) $60,000 2,000 hours Account billing (lines) $30,000 20,000 lines Account verification (accounts) $15,000 20,000 accounts Correspondence (letters) $10,000 1,000 letters The above activities are carried out at two of their regional offices. Northeast Office Midwest Office Account inquiry (hours) 100 hours 200 hours Account billing (lines) 10,000 lines 7,000 lines Account verification (accounts) 1,000 accounts 600 accounts Correspondence (letters) 50 letters 100 letters How much of the account verification costs will be assigned to the Northeast Office?
Details Product J Product G Product P Total Direct $25 $20 $11 $12,38,000 Material Cost Direct Labor 4/3 1 88,000 Hours Machine 4/3 1 76,000 Hours Direct Labor $8 $12 $6 Cost No. of 3 7 20 30 production run No. of 3 20 32 Deliveries No. of 15 35 220 270 Receipts (2*7) No. of 15 10 25 50 production orders Production 30,000 20,000 8,000 and sales units Raw material 11 usage units The total overhead costs is $18,48,000. Set-up 1.623377%, Machines 41.125541%, Receiving 23.538961%, Packing 13.528139% and Engineering 20.183983% of total overhead costs. The company operates a just-in-time inventory policy, and receives each component once per production per run. In the past the company has allocated overheads to products on the basis of direct labor hours. However, the majority of overheads are more closely related to machine hours than direct labor hours. The company has recently redesigned its cost system by recovering overheads using two volume-related bases: machine hours and materials…
A company has two service departments, S1 and S2, and two production departments, P1 and P2. Departmental data for January is shown below: S1 Costs incurred Service provided to: S1 S2 P1 P2 Total $54,000 0% 20% 35% 45% 100% S2 $35,000 20% 0% 30% 50% 100% P1 $100,000 0% 0% 60% 40% 100% P2 $120,000 0% 0% 70% 30% 100% What are the total costs to P1 and P2 if the company uses the direct and sequential method of allocating its service department costs starting with S1.
Guna publishing company has three service departments & two operating departments. Selected data from a recent period on the five departments follow. Service Departments Operating Departments Total A B C 1 2 Overhead costs 140,000 105,000 48,000 275,000 430,000 998,000 Number of employees 60 35 140 315 210 760 Space occupied 15,000 10,000 20,000 40,000 100,000 185,000 Hours of press time - - - 30,000 60,000 90,000 The company allocated service department costs by the step method in the following order. A(number of employees). (B/space occupied), & C( hours of press time ) . The company makes no distinction between variable & fixed service department costs. Required Assuming that the company used the direct method, how much overhead cost would be allocated to each operating department? using the step method, allocate the service department costs to the…
Prob 5. 21-23
Gemini plc manufactures four products using the same machinery. The following details relate to its products: ProductA £ per unit ProductB £ per unit ProductC £ per unit ProductD £ per unit Selling price 28 34 45 46 Direct material 6 7 9 7 Direct labour 5 5 10 10 Variable overhead 3 3 6 6 Fixed overhead * 8 8 16 16 Profit 6 11 4 7 Labour hours 1 1 2 2 Machine hours 4 3 4 5 Units Units Units Units Maximum demand per week 200 180 250 100 *Absorbed based on budgeted labour hours of 1000 per week. There is a maximum of 2000 machine hours available per week. A) Determine the production plan which will maximize the weekly profit of Gemini plc and prepare a profit statement showing the profit your plan will yield. - ANSWERED, SEE ATTACHED IMAGE Please see the findings of A) as an attachement. Please respond to part B) B) The marketing director of Gemini plc is concerned…

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mbers 10 to 21 are be JGG Company has two service de ting of Producing Departments Dept. B Dept. A Dept. C Maintenance Engineering 400 Service Departments Maintenance hours Engineering hours 800 800 200 400 P90,000 200 400 P50,000 400 P80,000 P54,000 D12.000