+ I/PMI* 00#3ra Credit- Chapter 11 & 13 ReviewTenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the company allocatescommon costs to the divisions. During the past month, the following common costs were incurred:3.$ 279,000Computer services (85% fixed)Building occupancyPersonnel costs000'089118,000Total common costs000 LOThe following information is available concerning various activity measures and service usages by each of the divisions:Division ADivision B000$ 451,000Area occupied (square feet)000Payroll$ 251,000Computer time (hours)Computer storage (megabytes)098Equipment valueOperating profit (pre-allocations)7,200$ 217,000$552,500-0-$ 267,000$ 492,500If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to DivisionB (rounded to the nearest whole dollar)?McGraw< Prev3 of 20Next >11!H10:23 PM(D罗4/26/2021Type here to search直。PrtScDelete+DE3同回F10EscF5F7F8F11F12Su&Bac%235.6GH.BAltCtrlAltHome

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Description: + I/PMI* 00#3ra Credit- Chapter 11 & 13 ReviewTenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the company allocatescommon costs to the divisions. During the past month, the follo

Computer service cost = $279,000 Computer time is 360 Total computer time is 700

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ra Credit - Chapter 11 & 13 Review 3 Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the company allocates common costs to the divisions. During the past month, the following common costs were incurred: Computer services (85% fixed) Building occupancy 000 6$ 000'089 Personnel costs Total common costs 000'81 The following information is available concerning various activity measures and service usages by each of the divisions: Division A Division B Area occupied (square feet) Payroll 21,000 $451,000 000'2 $ 251,000 Computer time (hours) Computer storage (megabytes) Equipment value Operating profit (pre-allocations) 098 7,200 $ 217,000 -0- 000 297 $ $552,500 $ 492,500 If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B (rounded to the nearest whole dollar)? Graw

ra Credit - Chapter 11 & 13 Review 3 Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the company allocates common costs to the divisions. During the past month, the following common costs were incurred: Computer services (85% fixed) Building occupancy 000 6$ 000'089 Personnel costs Total common costs 000'81 The following information is available concerning various activity measures and service usages by each of the divisions: Division A Division B Area occupied (square feet) Payroll 21,000 $451,000 000'2 $ 251,000 Computer time (hours) Computer storage (megabytes) Equipment value Operating profit (pre-allocations) 098 7,200 $ 217,000 -0- 000 297 $ $552,500 $ 492,500 If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B (rounded to the nearest whole dollar)? Graw

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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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs From: Service department costs IT HR Total IT $ 0 16 $ 152,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. HR 1,525 0 $ 247,950 152,000 Answer is not complete. Cost Allocation To: IT HR 152,000 $ 247,950 Publishing 2,440 24 $ 431,000 $ 247,950 Publishing $ Binding 2,135 40 $ 392,500 0 Binding 0
Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 1 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $72,000 $86,400 $108,000 $117,600 Square feet of factory floor space 48,000 96,000 Number of factory workers 110 70 Planned direct labor hours for the year 24,000 36,000 Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do not round bases when calculating reallocations of service departments. Production 1 2 Identifiable and allocated overhead Answer Answer Reallocation of service departments: Dept. 1 Factory floor space Answer Answer Dept. 2 Number of factory workers Answer Answer Total manufacturing overhead Answer Answer What is the apparent…
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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs. IT HR 0 16 1,525 0 Publishing 2,440 24 $ 152,000 $ 247,950 $ 431,000 Binding 2,135 40 $ 392,500 Woodstock Binding estimates that the variable costs in the IT Department total $112,500, and in the HR Department variable costs to $142,500. Avoidable fixed costs in the IT Department are $18,250. Required: If Woodstock Binding outsources the IT Department functions, what is the maximum it can pay an outside vendor without increasing total costs? Note: Do not round intermediate calculations. × Answer is complete but not entirely correct. Maximum…
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Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number of employees Square footage Human Resources General Factory Direct costs Allocate: General Factory Support Departments Human Resources Human Resources Total after allocation $150,000 1,500 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Human…
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