NAME Free-response question #1 is based on the following information: XYZ Inc. makes superfood for household pets and has a central food testing laboratory. The testing support department for four production departments: the Cat Food Department, the Dog Food Department, the Snake Food Department, and the Bird Food Department. The following data apply to the coming budget year. Budgeted costs of operating the testing laboratory for 10,000 to 40,000 technician hours per year. Fixed costs per year Variable costs per technician hour $4,488,000 $30 Budgeted long-run usage of technician hours per year. Cat Food Dept 10,000 Dog Food Dept. 21,000 Snake Food Dept. 1.000 Bird Food Dept. 2.000 Budgeted amounts are used to calculate the allocation rates. Actual usage of technician hours for the year was Cat Food Dept Dog Food Dept Snake Food Dept Bird Food Dept. 12,000 22,000 1700 1.000 Using the dual-rate cost-allocation method, what is the total amount of testing laboratory costs that will be allocated to the Bird Food Department? Assume that variable costs of the support department are allocated based on budgeted variable costs per hour and actual usage and fixed costs of the support department are allocated based. on budgeted fixed costs per hour and budgeted usage.
NAME Free-response question #1 is based on the following information: XYZ Inc. makes superfood for household pets and has a central food testing laboratory. The testing support department for four production departments: the Cat Food Department, the Dog Food Department, the Snake Food Department, and the Bird Food Department. The following data apply to the coming budget year. Budgeted costs of operating the testing laboratory for 10,000 to 40,000 technician hours per year. Fixed costs per year Variable costs per technician hour $4,488,000 $30 Budgeted long-run usage of technician hours per year. Cat Food Dept 10,000 Dog Food Dept. 21,000 Snake Food Dept. 1.000 Bird Food Dept. 2.000 Budgeted amounts are used to calculate the allocation rates. Actual usage of technician hours for the year was Cat Food Dept Dog Food Dept Snake Food Dept Bird Food Dept. 12,000 22,000 1700 1.000 Using the dual-rate cost-allocation method, what is the total amount of testing laboratory costs that will be allocated to the Bird Food Department? Assume that variable costs of the support department are allocated based on budgeted variable costs per hour and actual usage and fixed costs of the support department are allocated based. on budgeted fixed costs per hour and budgeted usage.
Chapter1: An Overview Of Strategic Marketing
Section1.2: Dollar Shave Club: The Company For Men
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NAME q, Snake Food Department, and the Bird Food Department. The following Budgeted cosis of on per year Variable costs per tech. Dog Food Dept. Snake Food Depl. Bird Food Deet. Budgeted amounts are used to calculate the allocation robes. Actual usage of technician hours for the year was: Using the dual - rate cost - allocation method, what is the tolal amount of testing labortion, costs that will be budgeted variable costs per bour and budgeted usage. a budgeted fixed costs per hour and budgeted usage.
Transcribed Image Text:NAME
Free-response question #1 is based on the following information:
XYZ Inc. makes superfood for household pets and has a central food testing laboratory. The testing
support department for four production departments: the Cat Food Department, the Dog Food Department, the
Snake Food Department, and the Bird Food Department. The following data apply to the coming budget year.
Budgeted costs of operating the testing laboratory for 10,000 to 40,000 technician hours per year.
Fixed costs per year
Variable costs per technician hour
$4,488,000
$30
Budgeted long-run usage of technician hours per year.
Cat Food Dept
10,000
Dog Food Dept.
21,000
Snake Food Dept.
1.000
Bird Food Dept.
2.000
Budgeted amounts are used to calculate the allocation rates.
Actual usage of technician hours for the year was
Cat Food Dept
Dog Food Dept
Snake Food Dept
Bird Food Dept.
12,000
22,000
1700
1.000
Using the dual-rate cost-allocation method, what is the total amount of testing laboratory costs that will be
allocated to the Bird Food Department? Assume that variable costs of the support department are allocated based
on budgeted variable costs per hour and actual usage and fixed costs of the support department are allocated based.
on budgeted fixed costs per hour and budgeted usage.
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