Prepare the reports in a responsibility system for: The vice president of production.To VicePresident-ProductionControllableCosts:VP ProductionAssemblyfactories:TotaltA$BudgetLALA$Actual$LA$FavorableUnfavorableNeither Favoranor Unfavorab Bridgeport Company's organization chart includes the president; the vice president of production; three assembly factories-Dallas,Atlanta, and Tucson; and two departments within each factory-Machining and Finishing. Budget and actual manufacturing cost datafor July 2022 are as follows.Finishing Department-Dallas: direct materials $36,550 actual, $37,840 budget; direct labor $71,724 actual, $70,520 budget;manufacturing overhead $43,860 actual, $42,312 budget.Machining Department-Dallas: total manufacturing costs $189,200 actual, $188,340 budget.Atlanta factory: total manufacturing costs $364,640 actual, $361,200 budget.Tucson factory: total manufacturing costs $425,012 actual, $426,990 budget.The Dallas factory manager's office costs were $81,700 actual and $79,120 budget. The vice president of production's office costswere $113,520 actual and $111,800 budget. Office costs are not allocated to departments and factories.

Variance is the difference between budgeted amount and actual amount. Variance is favorable when…

Answered: Prepare the reports in a responsibility…

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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Support department cost allocation Hooligan Adventure Supply produces and sells various outdoor equipment. The Molding and Assembly production departments are supported by the Personnel and Maintenance departments. Personnel costs are allocated to the production departments based on the number of employees, and Maintenance costs are allocated based on number of service calls. Information about these departments is detailed in the following table: Line Item Description PersonnelDepartment MaintenanceDepartment MoldingDepartment AssemblyDepartment Number of employees 28 10 41 49 Number of service calls 57 41 168 112 Department cost $15,000 $11,400 $72,000 $69,000 1. Which of the following statements matches the sequential method of cost allocations?a. Support departments are often allocated in order from lowest to the highest cost with preference given to the departments that serve few support…
What is the measured mile approach used for?a. Calculate budget spentb. Measure office overheadc. Calculate loss of productivityd. Measure unit costs on site
Fey Company's organization chart includes the president; the vice president of production; three assembly plants-Dallas, Atlanta, and Tucson; and two departments within each plant-Machining and Finishing. Budget and actual manufacturing cost data for July 2020 are as follows. Finishing Department-Dallas: direct materials $41,310 actual, $44,510 budget; direct labor $83,850 actual, $82,510 budget; manufacturing overhead $50,800 actual, $50,110 budget. Machining Department-Dallas: total manufacturing costs $224,690 actual, $217,360 budget. Atlanta Plant: total manufacturing costs $423,380 actual, $423,790 budget. Tucson Plant: total manufacturing costs $495,240 actual, $497,130 budget. The Dallas plant manager's office costs were $96,350 actual and $93,480 budget. The vice president of production's office costs were $135,560 actual and $133,440 budget. Office costs are not allocated to departments and plants.
Which one of the following is not a step in allocating the support department cost to the production department? Select one: a. Trace all the overhead cost b. Divide the departments in to support and producing departments c. Undertake a breakeven analysis d. Divide the company in departments
The cost of the management accountant working in the front office of a company is a direct, variable, product cost. O fixed product cost. O indirect period cost. fixed period cost.
Standard cost are used primarily for: Estimating future costs. To produce financial statements for external users. To judge the performance of accounting managers. To judge the performance of managers involved in the manufacturing process.
The ____ costing system is the most useful system for management in planning ang controlling business activities such as in the use of CVP analysis and inventories management. A. Absorption B. variable C. job order D. standard
The Cost of Production Report provides info and reports on the production costs charged to that department and the costs allocated to finished goods and to work-in-process. True False
How is activity-based cost allocation useful to management for control and evaluation of the performance of a department? List three points only and briefly discuss them. Why is it necessary for the cost accountant to determine the percentage of completion in the ending work in process inventory at the end of the period? Briefly explain.
E
Activity-based costing can be beneficial in allocating selling and administrative expenses to various products for managerial decision making. Which of the following would be the best allocation base for help desk costs? a. number of sales employees Ob. number of products sold c. number of calls Od. square footage of the help desk office
Question 1 The term "cost" means: all of these. the price paid for a raw material. the wage paid to a worker. the price charged by an entity for its services. Question 2 The sequence of activities that add value to the organization are: the value chain. the value processes. the chain of production events. the strategic cost initiatives.

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Prepare the reports in a responsibility system for: The vice president of production. To Vice President- Production Controllable Costs: VP Production Assembly factories: $ Budget $ Actual $ Favorabl Unfavorab Neither Favo nor Unfavor