Required:1. Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step method(design department goes first), and (c) the reciprocal method. (Do not round intermediate calculations. Round your final answers tonearest whole dollar amount.)a. Direct Methodb. Step Method (Design Department goes first)c. The Reciprocal Method (using Solver)Department A Department BTotal Required information[The following information applies to the questions displayed below.]Marin Company produces two software products (Cloud-X and Cloud-Y) in two separate departments (A and B). Theseproducts are highly regarded network maintenance programs. Cloud-X is used for small networks and Cloud-Y is used forlarge networks. Marin is known for the quality of its products and its ability to meet dates promised for software upgrades.Department A produces Cloud-X, and department B produces Cloud-Y. The production departments are supported by twosupport departments, systems design and programming services. The sources and uses of the support department timeare summarized as follows:FromDesign400Programming5,000Labor and materials (all variable)Depreciation and other fixed costsTotalToDesignProgrammingThe costs in the two service departments are as follows:Department A1,000600Design$ 65,00049,000$ 114,000Department B9,0001,000Programming$ 45,0004,000$ 49,000Total LaborHours15,0002,000

Direct methodThe direct method is the method of cost allocation which determines the allocation of…

Required: 1. Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step method (design department goes first), and (c) the reciprocal method. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) a. Direct Method b. Step Method (Design Department goes first) c. The Reciprocal Method (using Solver) Department A Department B Total

Required: 1. Determine the total support costs allocated to each of the producing departments using (a) the direct method, (b) the step method (design department goes first), and (c) the reciprocal method. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) a. Direct Method b. Step Method (Design Department goes first) c. The Reciprocal Method (using Solver) Department A Department B Total

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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1. Calculate the budgeted unit cost of basic and deluxe trophies based on a single plant-wide overhead rate, if total overhead is allocated based on total direct costs. (Don't forget to include direct material and direct manufacturing labor cost in your unit cost calculation.) 2. Calculate the budgeted unit cost of basic and deluxe trophies based on departmental overhead rates, where forming department overhead costs are allocated based on direct manufacturing labor costs of the forming department and assembly department overhead costs are allocated based on total direct manufacturing labor costs of the assembly department. 3. Calculate the budgeted unit cost of basic and deluxe trophies if Tribute allocates overhead costs in each department using activity-based costing, where setup costs are allocated based on number of batches and general overhead costs for each department are allocated based on direct manufacturing labor costs of each department.
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Assume a company provided the following information: Departmental costs Number of employees Square feet of space occupied Multiple Choice If the company (1) uses the direct method to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to: C $58,338. $63,467. $76,800. Service Departments Operating Departments Cafeteria Janitorial Lab Tech $232,000 $950,000 32 68 $240,000 $140,000 20 2,000 11,000 9,000 $116,800. 10 3,000
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Required information SB (Static) 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 (52) Production 1 (P1) Production 2 (P2) P1 P2 Cost $ 30,000 20,000 100,000 150,000 Total Cost Allocated S1 0% 20 P2 35% 20 60 Brief Exercise 7-14 (Static) If the cost in P1 is changed from... [LO 7-3] 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 $100,000 to $120,000? 52 P1 30% 35% 0