Preston Family Lodge is a bed and breakfast establishment in a restored historic building. The lodge's guests enjoy premium accommodations and personalized service. The lodge's overhead budget for the most recent month appears below: Activity Level 90 guests Variable Overhead Costs: Supplies $90 Laundry $540 Fixed Overhead Costs: Utilities $370 Salaries and Wages $5,100 $2,800 $8,900 Depreciation Total Overhead Cost The lodge's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 80 guests?

Preston Family Lodge is a bed and breakfast establishment in a restored historic building. The lodge's guests enjoy premium accommodations and personalized service. The lodge's overhead budget for the most recent month appears below: Activity Level 90 guests Variable Overhead Costs: Supplies $90 Laundry $540 Fixed Overhead Costs: Utilities $370 Salaries and Wages $5,100 $2,800 $8,900 Depreciation Total Overhead Cost The lodge's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 80 guests?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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Mongelli Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity level Variable overhead costs: 90 guests Supplies Laundry Fixed overhead costs: $ 234 315 Utilities 220 Salaries and wages 4,290 2,680 Depreciation Total overhead cost $7,739 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 99 guests? (Round your intermediate calculations to 2 decimal places.)
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The Fitness Club has two operating departments- Programming & Classes and Individual fitness. There are also two service centers- Janitorial and Cafeteria. Janitorial costs are allocated based on square footage, while Cafeteria costs are allocated based on number of employees. The costs traceable to the operating and service center during 2019 were as follows: Service Centers Operating Departments Programming & Classes Individual Janitorial Cafeteria Fitness Materials 5,000 Labor МОН P 10,000 P 200,000 P 8,000 100,000 20,000 130,000 1,600 5 300,000 40,000 540,000 8,000 14 265,000 75,000 348,000 24,000 19 150,000 90,000 245,000 32,000 Total Square footage No. of Employee In addition to these costs, the Cafeteria generates revenues of P480,000. Janitorial is allocated based on square footage and Cafeteria is allocated based on the number of employees. Using the step method to allocate the service center costs, what is the total cost of Programming and Classes?
A company has two operating departments: Retail Shops and Online Shop. Each of the operating departments uses the services of the company's two service departments: Admin and HR. Additionally, the Admin and HR departments use the services of each other. Data concerning the past year are as follows: Retail Online Admin HR Total Shops Shop Budgeted overhead costs before any interdepartment cost allocations Support work furnished: For Admin department $250,000 $190,000 $380,000 $470,000 S1,290,000 Number of Admin tasks 90 290 120 For HR department No. of employees 21 62 17 Required (a) Compute the total overhead costs of the operating departments (Retail Shops and Online Shop) after the service department costs of Admin and HR have been allocated using (i) the direct method. (ii) the step-down method. (using the sequence of cost of service provided) (iii) the reciprocal method. (b) Which method would you recommend that the company use to allocate service department costs? Why? You should…
Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.10 per guest check-in, $24.00 per room cleaning, and $4.00 per served meal (not including food). Tara Stone visited the hotel for a 4-night stay. Tara had 5 meals in the hotel during the visit. Determine the total activity-based cost for Stone's visit during the month. Round your answer to the nearest cent.$fill in the blank 1
Current Attempt in Progress Splish College provides its own housekeeping services. The College director would like to outsource this service and has found a company that will provide the service for $49 per hour. The following information has been collected about the cost per hour to the college for performing its own housekeeping services Cost per hour of service: Cleaning supplies $3 Direct labour costs $27 Variable overhead $1 Total hours of housekeeping services per year 3,040 Total fixed overhead $55,080 (a) Your answer is partially correct Determine whether Splish College should outsource housekeeping, assuming that 50% of fixed costs can be eliminated if the service is outsourced. (If an amount reduces the net income then enter with a negative sign preceding the number, eg-15,000 or parenthesis, eg (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) amber of hours: 040 In-house eaning supplies…
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Concord Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available. Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs Time Charges $171,000 42,750 28,500 $242,250 Material Loading Charges $38,760 17,100 47,880 $103,740 The company has budgeted for 7,125 hours of technician time during the coming year. It desires a $38 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2022 will be $798,000.
Middler Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services (CCS) service department costs to profit centers. The following table lists service categories and cost drivers used by the CCS department. The table also includes cost and cost drivers for each service for October. CCS ServiceCategory Cost Driver Budgeted Cost Budgeted CostDriver Quantity Help desk Number of calls $110,250 2,500 Network center Number of devices monitored 619,500 8,850 Electronic mail Number of user accounts 47,600 5,950 Handheld technology support Number of handheld devices issued 106,240 8,300 One of the profit centers for Middler Corporation is the Communication Systems (COMM) sector. Assume the following information for the COMM sector: The sector has 2,000 employees, of whom 40% are office employees. Almost all office employees (70%) have a computer on the network. 90 percent of the employees with a computer…
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A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows. Activity Purchasing Cleaning factory Providing utilities Activity cost pool Purchasing Factory Expected Cost $127,600 31,500 63,070 Expected Costs Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Expected Amount of Cost Driver Cost Driver Purchase orders Square feet Square feet 4,400 4,900 Activity Overhead Rate Expected Usage of Cost Driver 4,488 purchase orders 4,900 square feet 4,900 square feet per purchase order per square foot