Palace Company has two service departments and two user departments. The number of employees in each department is: Personnel Cafeteria 25 Producing Department A Producing Department B 067 255 085 The fixed costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $96,280 during a given period, the amount of cost allocated to the Cafeteria under the step method would be:

Palace Company has two service departments and two user departments. The number of employees in each department is: Personnel Cafeteria 25 Producing Department A Producing Department B 067 255 085 The fixed costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $96,280 during a given period, the amount of cost allocated to the Cafeteria under the step method would be:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

4. Running Shorts Co. makes two products: A and B. In the folding department, budgeted information is as follows: Budgeted indirect labor costs in the workshop: $150,000 Budgeted depreciation expenses of equipment: $50,000 Budgeted direct labor costs: $100,000 Budgeted units produced: 50,000 The company allocates indirect labor costs based on direct labor costs and allocates depreciation expenses of equipment based on units produced. The actual direct labor costs for product A are $60,000 and 40,000 units of product A are produced. How much is the manufacturing overhead of product A in the folding department? 120,000 90,000 130,000 40,000
Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of $390,000 are allocated on the basis of budgeted warehouse - hours. Data Center Department costs of $100,000 are allocated based on the number of computer log - on hours. The costs of operating departments Music and Books are $122,500 and $147,000, respectively. Data on budgeted warehouse - hours and number of computer log - on hours are as follows: Support Departments Production Departments Warehouse Data Center Music Books Department $390,000 Department $100,000 Budgeted costs Budgeted warehouse - hours Number of computer hours $122,500 $147.000 NA 580 1,040 1,600 220 NA 810 1,010 Dr Using the step - down method, what amount of Data Center Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round intermediary calculations to three decimal places.) O A.…
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $310,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $192,000 and $288,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Budgeted costs Budgeted maintenance-hours Number of employees Support Departments OA $200,588 OB. $124,235 OC. $135415 OD. $74,260 Maintenance Personnel Department Department $310,000 $170,000 NA 900 Production Departments A B $192,000 $288,000 1,210 660 75 NA 660 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocated first? (Do not round any intermediary calculations.) 290
A company identified the following partial list of activities, costs, and activity drivers expected for the next year: Budgeted Costs $ 83,600 $ 8,800 $ 40,500 Activity Extrusion costs Handling costs Packaging costs Production volume Batches made Orders filled Product A 750,000 units 200 batches 75 Cost Driver Number batches made Number of orders filled Number of units made Product B 600,000 units 750 batches 200 Calculate activity rates for each of the three activities using activity-based costing (ABC). 4
Marigold Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is used for each department. The graphs show the following. 1. 2. (a) $ $ At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $47,000 in the Fabricating Department and $37,600 in the Assembling Department. State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) (b). At normal capacity of 47,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $159,800 in the Fabricating Department and $112,800 in the Assembling Department. Your answer is correct. 47,000 total Fixed Costs 37,600 total Fixed Costs eTextbook and Media The total budgeted cost Fabricating Department + Variable Costs…
Solomon Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Solomon expects to incur $640,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour Total Direct labor hours 4,600 6,600 4,800 16,000 Machine hours 1,200 2,300 2,900 6,400 Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product.
Betty's Book and Music Store has two service departments, Warehouse and Data Centre. Warehouse Department costs of $175,000 are allocated on the basis of budgeted warehouse-hours. Data Centre Department costs of $75,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $125,000 and $150,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Support Departments Production Departments Warehouse Department Data Centre Department Music Books Budgeted costs $175,000 $75,000 $125,000 $150,000 Budgeted warehouse-hours NA 250 500 750 Number of computer hours 100 NA 400 500 Required: Assign the support department costs to the production departments using: The Direct Method (3) The Step-Down Method assigning the Warehouse Department first (4) The Reciprocal Method using linear equations. (4)
Marigold Company has two production departments, Fabricating and Assembling. At a department managers' meeting, the controller uses flexible budget graphs to explain total budgeted costs. A separate graph based on direct labor hours is used for each department. The graphs show the following. 1. 2. (a) At zero direct labor hours, the total budgeted cost line and the fixed-cost line intersect the vertical axis at $47,000 in the Fabricating Department and $37,600 in the Assembling Department. At normal capacity of 47,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $159,800 in the Fabricating Department and $112,800 in the Assembling Department. State the total budgeted cost equation for each department. (Round cost per direct labor hour to 2 decimal places, e.g. 1.25.) total total + + of $ of $ per direct labor hour per direct labor hour
Production Department 1 (PD1) and Production Department 2 (PD2) had factory overhead budgets of $26,000 and $48,000, respectively. Each department was budgeted for 5,000 direct labor hours of production activity. Product T required 5 direct labor hours in PD1 and 2 direct labor hours in PD2. What is the factory overhead cost associated with Product T, assuming that factory overhead is allocated using the multiple production rate method? a. $40.40 b. $45.20 c. $26.00 d. $58.40
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $370,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $120,000 are allocated based on the number of employees. The costs of operating departments A and B are $196,000 and $294,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments Budgeted costs $370,000 Budgeted maintenance- hours Number of employees Maintenance Personnel Department Department 200 Support Departments 90 870 A $120,000 $196,000 $294,000 15 B 1,260 670 280 680 Using the direct method, what amount of Personnel Department costs will be allocated to Department B? (Do not round any intermediary calculations.)