Required information SB The following information is ... [The following information applies to the questions displayed below.] P1 P2 The following information is departmental cost allocation with two service departments and two production department Percentage Service Provided to Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 49,000 39,000 290,000 340,000 Total Cost Allocated S1 0% 25 S2 P1 30% 35% 0 45 Brief Exercise 7-14 [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 $290,000 to $310,000? P2 35% 30

Required information SB The following information is ... [The following information applies to the questions displayed below.] P1 P2 The following information is departmental cost allocation with two service departments and two production department Percentage Service Provided to Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 49,000 39,000 290,000 340,000 Total Cost Allocated S1 0% 25 S2 P1 30% 35% 0 45 Brief Exercise 7-14 [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 $290,000 to $310,000? P2 35% 30

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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Y2 Part 1 Clean−It−Up, Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead (both variable and fixed) is allocated to products on the basis of budgeted machine-hours. In 2020, budgeted fixed manufacturing overhead cost was$18,000,000. Budgeted variable manufacturing overhead was $8 per machine-hour. The denominator level was 1,000,000 machine-hours.
P1 P2 Department Service 1 (51) Service 2 (52) Production 1 (P1) Production 2 (P2) Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Cost $ 46,000 36,000 260,000 310,000 Total Cost Allocated CARIN Percentage Service Provided to 25 . $2 20% 40% 40% Do 30 What is the amount of service department cost allocated to P1 and P2 using the direct method? Saved
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3-32 Drop a division relevant cost Johnny's Bar and Restaurant (JBR) offers three areas to its cus tomers: bar, restaurant, and games. Johnny is concerned about the following division income statement recently prepared by his accountant: Revenue. Variable costs. Contribution margin Fixed cost.. Division contribution. Revenue Variable costs RESTAURANT $220,000 80,000 Contribution margin Avoidable fixed cost $140,000 120,000 $ 20,000 Division contribution. Fixed cost allocated Division contribution. RESTAURANT $220,000 80,000 BAR $180,000 60,000 Johnny feels that these results confirm his intuition that the games area should be closed and the restaurant and bar areas expanded. $140,000 100,000 $120,000 70,000 $ 50,000 Required (a) Based on this information, would you recommend that Johnny close the games area? (b) Suppose now that the fixed costs in the above exhibit are comprised of two components costs that can be eliminated if each area is closed and ongoing costs that can only be…
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e Preview 4) F3 $ R 01- Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Price Cost of goods sold Gross profit F4 Customer service Project bidding Engineering support Total costs In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: S⁰5 Activity Number of service requests Number of bids Number of customer design changes Unit volume % Activity 3:0 F5 T Activity-base usage and unit volume information for the…