Required information[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 ServiceProvided toP1P1DepartmentService 1 (51)Service 2 (52)Production 1 (P1)Production 2 (P2)Cost$ 46,00036,000260,000310,000Total CostAllocated250What is the amount of service department cost allocated to P1 and P2 using the direct method?40%45 cesP1P2DepartmentService 1 (S1)Service 2 (52)Production 1 (P1)Production 2 (P2)Required information[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 ServiceProvided toTCost$ 46,00036,000260,000310,000Total CostAllocated0%25What is the amount of service department cost allocated to P1 and P2 using the direct method?40% 40%30BDEVEL

Solution: Under direct method of service department cost allocation, cost of service department is…

P1 Required information [The following information applies to the questions displayed below. The following information is departmental cost allocation with two se P2 Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) Cost $ 46,000 36,000 260,000. 310,000 Total Cost Allocated Percentage Service Provided to 0% What is the amount of service department cost allocated to P1 and P2 using 25 S2 P1 P2 20% 40% 40% 0 45

P1 Required information [The following information applies to the questions displayed below. The following information is departmental cost allocation with two se P2 Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) Cost $ 46,000 36,000 260,000. 310,000 Total Cost Allocated Percentage Service Provided to 0% What is the amount of service department cost allocated to P1 and P2 using 25 S2 P1 P2 20% 40% 40% 0 45

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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! Required information SB 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 (S2) Production 1 (P1) Production 2 (P2) P1 P2 Brief Exercise 7-14 [LO 7-3] Cost $ 49,000 S1 0% 39,000 25 290,000 340,000 Total Cost Allocated 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 $290,000 to $310,000? S2 P1 P2 30% 35% 35% 0 45 30
O MyPath Home Content O Managerial Accounting, Fifteenth x My Questions | bartleby х O File | C:/Users/pse/Documents/managerial-accounting-15th-edition.pdf Managerial Accounting, Fifteenth Edition 204 / 795 Required: 1. Compute the cost per equivalent unit for materials, for labor, and for overhead. 2. Compute the total cost per equivalent whole unit. EXERCISE 4-4 Applying Costs to Units-Weighted-Average Method [LO4–4] Data concerning a recent period's activity in the Prep Department, the first processing department in a company that uses process costing, appear below: Materials Conversion Equivalent units of production in ending work in process Cost per equivalent unit 2,000 $13.86 800 $4.43 A total of 20,100 units were completed and transferred to the next processing department during the period. Required: Compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory. EXERCISE 4-5 Cost Reconciliation…
Chapter) 254 Numbers 10 to 21 are based on the following data: service annual departments to the producing departments on the baside available: better that maintenance and engineering service hours be used service cost allocation basis. The following data was Producing Departments Dept. B Service Departments Dept. A Dept. C Maintenance Engineering 400 Maintenance hours Engineering hours Overhead costs 800 800 200 400 P90,000 200 400 P50,000 400 P80,000 P54,000 P12,000 p0ol method) whot
P1 P2 Department Service 1 (51) Service 2 (52) Production 1 (P1) Production 2 (P2) Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Cost $ 46,000 36,000 260,000 310,000 Total Cost Allocated CARIN Percentage Service Provided to 25 . $2 20% 40% 40% Do 30 What is the amount of service department cost allocated to P1 and P2 using the direct method? Saved
Identify under or over allocation from the following information :i. Actual Overhead tk 2,000, allocated overhead tk 1,500ii. Allocated Overhead 6,000 ,actual overhead 5,200iii. Actual Overhead 10,000, allocated overhead tk 18,000
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Sales Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses Income (loss) Acoustic $ 101,600 44,875 56,725 5,045 10,110 19,500 1,980 7,005 3,025 46,665 $ 10,060 Electric $ 83,800 46,950 36,850 4,320 8,510 17,300 1,780 5,980 2,570 40,460 $ (3,610) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?
Below are departmental income statements for a guitar manufacturer. The company classifies advertising, rent, and utilities as indirect expenses. The manufacturer is considering eliminating its Electric Guitar department because it shows a loss. Departmental Income Statements For Year Ended December 31 Acoustic Sales $ 103,300 Electric $ 83,300 Cost of goods sold Gross profit Expenses Advertising Depreciation-Equipment Salaries Supplies used Rent Utilities Total expenses 45,275 47,450 58,025 35,850 4,995 4,300 10,120 8,580 20,100 17,900 1,950 1,730 7,085 6,000 3,005 2,570 47,255 41,080 Income (loss) $ 10,770 $ (5,230) 1. Prepare a departmental contribution to overhead report. 2. Based on contribution to overhead, should the electric guitar department be eliminated?
EXCEL PROBLEM 6-9. Choice of Allocation Base, Problems with Cost Allocation [LO 1] Tilden Financial Services has two divisions, Financial Planning and Business Consulting. The firm's accountants are in the process of selecting an allocation base to allocate centrally provided per- sonnel costs to the divisions. Two allocation bases have been proposed: salary and headcount (number of employees). Personnel costs are expected to to the allocation: $1,500,000. The following data relate Financial Planning Business Consulting Salaries $15,000,000 $5,000,000 ,006 Headcount 200 50 REQUIRED a. Prepare a schedule showing the allocations to the two divisions using each allocation base. b. Referring to your answer to part a, explain why allocations are sometimes considered arbitrary.
Problem 11-65 (Static) Reciprocal Cost Allocation - Outsourcing a Service Department (LO 11-4, 5) BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees 25 45 180 Transactions 25,000 20,000 80,000 Department direct costs $360,000 144,000 936,000 $3,600,000 BluStar estimates that the cost structure in its operations is as follows. Administration Accounting Domestic International Variable costs $150,000 36,000 678,000 $2,562,000 Fixed costs 210,000 108,000 258,000 1,038,000 Total costs $360,000 144,000 936,000 $3,600,000 Avoidable fixed…
Please refer to the pictures for info and questions 1 and 2. See below for question 3 format. Department Departmental Overhead Rate Standard Deluxe Hours per Unit Overhead Allocated Hours per Unit Overhead Allocated Assembly Finishing Totals $0 $0
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
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.