Subject - Acounting The Norfolk School of Commerce (NSC) operates a Career Counseling Center (CCC) to advise students and help with job placement.The CCC is available for both undergraduate and graduate degree students. The CFO at NSC wants better cost information about thenon-instructional activities of the School to be able to advise the dean on managing costs. The CFO asks the head of the CCC torecommend an allocation of the annual cost of the Center to the two degree programs.The CCC head, who has headed the Center for ten years, believes that two factors explain most of the costs-enrollment (number ofstudents) and usage (number of hours using the center for both counseling and interviews). Using information from a previous analysis,the Center budget was separated as follows:Costs driven by enrollment:Center managementCompany visits and supportCosts driven by usage:Center staffFacility maintenanceIT supportUtilities and suppliesTotal CCC costsData on enrollment and usage:Enrollment (students)Usage (hours)$ 996,0001,293, 200$ 2,289, 200Allocation of enrollment-related costsAllocation of usage-related costsTotal allocations$ 773,000503,000179,000359,000$ 1,814,000$ 4,103, 200Undergraduate9459,506Required:a. llocate the cost of the library to the two programs (undergraduate and graduate).UndergraduateGraduate31517,654GraduateTotal Which of the following statements regarding special orders is true?Multiple ChoiceThe primary decision for special orders is determining whether the differential revenue is greater than the differential costs associated with the order.The differential analysis approach to pricing for special orders could lead to overpricing in the long run because fixed costs are included in the analysis.Special orders are usually long-term commitments that impact other sales.Special orders are usually short-run occurrences and must include full product costs in the analysis.

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Required: a. Allocate the cost of the library to the two programs (undergraduate and graduate). Allocation of enrollment-related costs Allocation of usage-related costs Total allocations Undergraduate Graduate Total

Required: a. Allocate the cost of the library to the two programs (undergraduate and graduate). Allocation of enrollment-related costs Allocation of usage-related costs Total allocations Undergraduate Graduate Total

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 5TIF: The following situations describe scenarios that could use managerial accounting information: a. The...

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Gipps Business College (GBC) has two degree programs, undergraduate (UG) and graduate (GRAD) and three service departments, information technology (IT), Event Planning (EP), and Career Services (CS). The CFO of GBC is conducting a profitability analysis of the two programs and wants to include the appropriate costs of the service departments in the costs of the two degree programs. As a part of the analysis, the CFO has collected the following usage patterns of the ser vice departments over the last two years. Using Departments Suppying Department IT EP CS UG GRAD IT 0 10% 20% 40% 30% EP 0 0 25% 25% 50% CS 0 0 0 60% 40% Direct Costs $ 70,000.00 $ 90,000.00 $ 100,000.00 To be determined Required:- a.) The CFO is unsure what the best way to allocate the cost is and has asked you for the allocations to the UG and GRAD programs using: The direct method; The step method starting with IT, followed by EP,…
Burgess Business School has two degree programs, BBA and MBA. The school uses an ABC system to cost the three support services it provides to students from both programs: Career Center, Events, and Library. Following are the costs of these three activities and the cost drivers used in the system: Activity Cost Activity Career Center Event planning and hosting. Library For the most recent year, data collected from the central IT systems indicate the following: MBA 5,600 4,500 30,300 BBA 10,400 5,500 70,700 $ 448,000 440,000 606,000 Cost Driver Interview-hours Event attendance Number of visits Interview-hours Event attendance Library visits Required: a. Compute the cost-driver rates for the three activities at the school. b. Suppose that in a future period, no students from the MBA program visited the Library. What amount of the Library cost would be assigned to the MBA program?
Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments administrative services (AS) and information systems (IS) and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2020, Phoenix's cost records indicate the following: (Click the icon to view the cost records.) Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Operating Departments Support Departments AS GOVT CORP Direct Method Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs Total budgeted overhead of operating departments …………. IS Total
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Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments administrative services (AS) and information systems (IS) and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2020, Phoenix's cost records indicate the following: (Click the icon to view the cost records.) Read the requirements. Requirement 1c. Allocate the two support departments' costs to the two operating departments using the step-down method (Allocate IS first). (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a "0" for any zero balances.) Support Departments AS Operating Departments CORP Step-down Method IS GOVT Total Budgeted overhead costs 690,000 $2,100,000 $8,675,000 $12,490,000 $23,955,000 before interdepartment cost allocations Allocation of IS…
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Lamothe Solutions is a management consulting firm. Its Business Division advises firms on the adoption and use of financial systems. Civic Division consults with state and local governments. Civic Division has a client that is interested in implementing a new costing system in its public works department. The division's head approached the head of Business Division about using one of its associates. Corporate Division charges clients $770 per hour for associate services, the same rate other consulting companies charge. The Civic Division head complained that it could hire its own associate at an estimated variable cost of $370 per hour, which is what Business pays its associates. Required: a. What is the maximum price that Civic Division should pay? b. What is the maximum transfer price that Business Division should obtain for its services, assuming that it is operating at capacity?
The following situations describe decision scenarios that could use managerial accounting information: The manager of High Times Restaurant wishes to determine the price to charge for various lunch plates. By evaluating the cost of leftover materials, the plant manager of a precision tool facility wishes to determine how effectively the plant is being run. The division controller of West Coast Supplies needs to determine the cost of products left in inventory. The manager of the Maintenance Department of a large manufacturing company wishes to plan next year’s anticipated expenditures. For each situation, discuss how managerial accounting information could be used. b) What are the major differences between managerial accounting and financial accounting?
Lamothe Solutions is a management consulting firm. Its Business Division advises firms on the adoption and use of financial systems. Civic Division consults with state and local governments. Civic Division has a client that is interested in implementing a new costing system in its public works department. The division's head approached the head of Business Division about using one of its associates. Corporate Division charges clients $815 per hour for associate services, the same rate other consulting companies charge. The Civic Division head complained that it could hire its own associate at an estimated variable cost of $415 per hour, which is what Business pays its associates. Required: a. What is the maximum price that Civic Division should pay? b. What is the maximum transfer price that Business Division should obtain for its services, assuming that it is operating at capacity? c-1. Is there any change in maximum price as indicated in part (a), if Business Division had idle…
Using the step method to allocate the service center costs, what is the total cost of programming and classes?
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 IT 0 20 $ 156,800 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. 39,200 39,200 0x HR 1,585 0 $ 249,030 Answer is not complete. $ Cost Allocation To: HR Publishing 2,536 30 $ 433,400 0 0X 0 Publishing $ 0x 74,709 x 74,709 Binding 2,219 50 $ 398,500 $ Binding 0 x 124,515 124,515
The following situations describe scenarios that could use managerial accounting information: a. The manager of High Times Restaurant wants to determine the price to charge for various lunch plates. b. By evaluating the cost of leftover materials, the plant manager of a precision tool facility wants to determine how effectively the plant is being run. c. The division controller of West Coast Supplies needs to determine the cost of products left in inventory. d. The manager of the Maintenance Department of a large manufacturing company wants to plan next years anticipated expenditures. For each situation, discuss how managerial accounting information could be used.