1 PR 6-1 (Algo) (LO 6.1, 6.2) Nicabrew has two production departments...Nicabrew has two production departments that each produce one beverage: pinolillo and cacao. The maintenance department is asupport department that provides services to both production departments. Support department costs are allocated to Pinolillo andCacao departments on the basis of support department hours. The maintenance department has fixed costs of $212,000. In addition,the maintenance department incurs a rate of $28 per hour in variable costs. Budgeted and actual maintenance department hours ineach production department are as follows:Production DepartmentPinolilloSCacaoTotalRequired:Budgeted Hours Actual Hours2,5001,5003,0001,6004,0004,600QuestionAnswera1. If a single-rate cost allocation method is used, what amount of maintenance cost will bebudgeted for Pinolillo?$202,500.00a2. If a single-rate cost allocation method is used, what amount of maintenance cost will bebudgeted for Cacao?$121,500.00b1. If a single-rate cost allocation method is used, what amount of maintenance cost will beallocated to Pinolillo based on actual usage?b2. If a single-rate cost allocation method is used, what amount of maintenance cost will beallocated to Cacao based on actual usage?c1. If a dual-rate cost allocation method is used, what amount of maintenance cost will bebudgeted for Pinolillo?c2. If a dual-rate cost allocation method is used, what amount of maintenance cost will bebudgeted for Cacao?d1. If a dual-rate cost allocation method is used, what amount of maintenance cost will beallocated to Pinolillo based on actual usage?d2. If a dual-rate cost allocation method is used, what amount of maintenance cost will beallocated to Cacao based on actual usage?

Cost allocation refers to the process of identifying the costs and then assigning them to various…

Nicabrew has two production departments that each produce one beverage: pinolillo and cacao. The maintenance department is a support department that provides services to both production departments. Support department costs are allocated to Pinolillo and Cacao departments on the basis of support department hours. The maintenance department has fixed costs of $212,000. In addition, the maintenance department incurs a rate of $28 per hour in variable costs. Budgeted and actual maintenance department hours in each production department are as follows: Production Department Pinolillo Cacao Total Required: Budgeted Hours Actual Hours 2,500 1,500 3,000 1,600 4,000 4,600 Question a1. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? a2. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? b1. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? b2. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage? c1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? c2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? d1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? d2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage? Answer $ 202,500.00 $ 121,500.00

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 3E: Blue Africa Inc. produces laptops and desktop computers. The companys production activities mainly...