Original costBilling hours usedNumber of employeesIT hours used(a)$Support DepartmentsBilling$70,000 $119,000AuditYour answer is incorrect.2100HR$2200IT$95,000Tax1200Operating DepartmentsAuditOperating Divisions$558,000$2,00012900TaxAdvisory$837,000 $298,0001,40015Advisory600600Rank the three support departments by their original costs, and then allocate the support department costs using the stepmethod. (Round intermediate calculations to 4 decimal places, e.g. 15.2516 and final answers to 2 decimal places, e.g. 15.25.)3300$Totals$1,977,0004,000352,300Total As the managing partner of Swifty Accounting Services, Adam is trying to compare the profitability results of the firm's three different business lines: Audit, Tax, and Advisory Services. These three operating divisions are supportedby three support departments: Billing, Human Resources, and IT. The cost drivers (or allocation bases) for each of the support departments, along with each department's usage of those services and its own original costs, are asfollows. 1) Rank the three support departments by their original costs, and then allocate the support department costs using the step method. (Round intermediate calculations to 4 decimal places, e.g. 15.2516 and final answersto 2 decimal places, e.g. 15.25.) 2) Rank the three support departments based on the percentage of their service provided to other support departments, and then allocate their costs using the step method. (Round intermediatecalculations to 4 decimal places, eg. 15.2516 and final answers to 2 decimal places, eg 15.25)

Lets understand the basics.Cost allocation can be done using,(1) Direct method(2) Step down method…

Answered: riginal cost lling hours used umber of…

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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Garfield Company has the following information for the current year: Beginning fixed manufacturing overhead in inventory Fixed manufacturing overhead in production Ending fixed manufacturing overhead in inventory $210,000 800,000 70,000 Beginning variable manufacturing overhead in inventory Variable manufacturing overhead in production Ending variable manufacturing overhead in inventory What is the difference between operating incomes under absorption costing and variable costing? OA. $10,000 OB. $80,000 O C. $100,000 O D. $140,000 $30,000 100,000 30,000
MONTH 2 UNITS OF OUTPUT 200 300 3 Table E1.1 Jessie, Inc. Production Data MATERIALS FOREMAN SALARY 400 $250 $450 $1,400 $375 $675 $1,400 $500 $900 $1,400 recently released from Jessie, Inc. Referring to the table above what is the variable cost per unit for the foreman's salary? A) $7.00 B) $0.14 LABOR C) $6.00 D) none of the above UTILITIES $720 $740 $760 2
Percent of capacity 90% 100% 110% Direct labor hours 3,600 4,000 4,400 Units of output 720 800 880 Variable overhead $3,960 $4,400 $4,840 Fixed overhead 5,600 5,600 5,600 Total overhead $9,560 $10,000 $10,440 Normal capacity = 100% and overhead is applied based on direct labor hours Standard overhead rate = $10,000/4,000 = $2.50 per direct labor hour Direct materials are $69.50 per unit. Direct labor is $22.50 per hour. Prepare a flexible budget for overhead based on the above data. Flexible Budget 720 800 880 Direct Material $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Direct Labor fill in the blank 4 fill in the blank 5 fill in the blank 6 Variable Overhead fill in the blank 7 fill in the blank 8 fill in the blank 9 Fixed Overhead fill in the blank 10 fill in the blank 11 fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 $fill in the blank 15
Applying Excel 13: Predetermined Overhead Rate ✓ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 A B Raw Materials Inventory 57,500 5,700 43,000 Finished Goods Inventory 216,000 Factory Overhead 14,800 61,000 52,300 6,000 Multiple Choice с =+C17/F11 =+C17/(SUM(B17:B19)) =+E5/E3 37,000 14.800 173,000 =+E5/E4 122,100 D E Assuming the company applies overhead as a percentage of direct labor cost, which formula accurately computes the predetermined overhead rate? Work in Process Inventory 37,000 216,000 111.000 122,100 54,100 Factory Wages Payable 172,000 0 111.000 ......... 61,000
Indicator ' A 16 17 18 19 20 (1) $126,000 105,000 84,000 $200,000 D (2) $150,000 128,000 22,000 $138,000 E 1 2 Required: 3 Determine the missing amount for each separate situation involving work in process cost flows. 4 5 6 Total manufacturing costs 7 Work in process inventory, beginning 8 Work in process inventory, ending 9 Cost of goods manufactured 10 11 12 13 Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work. 14 Nothing in this area will be graded, but it will be submitted with your assignment. 15 (3) $217,000 32,000 185,000 $237,000 F G H 1 J
Room Revenue Room Profit Rooms Sold Actual $695,000 Average Room Rate $67.50 $500,000 Catering Revenue 10,300 Occupancy Percent 83.1% Budget Last Year $680,000 $240,000 $486,000 $68.00 10,000 Restaurant Revenue $126,000 $125,000 80.1% $250,000 $650,000 $460,000 Gift Shop Revenue $23,000 $22,000 $65.66 Beverage Revenue $48,000 $50,000 $47,000 9,900 79.8% $124.000 $245,000 Total F&B Revenue $414,000 $425,000 $416,000 $21,000 Total Revenues $1,132,000 $1,127,000 $1,087,000
For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Budget Snowmobile $ 20,590 11,500 ATV $ 28,600 Snowmobile $ 20,520 Actual ATV $ 30,030 11,870 22,450 5,500 5,500 21,600 5,400 6,300 4,510 1,010 470 6,800 650 7,400 4,270 440 6,400 $ 49,270 $ 65,560 $ 49,000 1,070 610 7,400 $ 67,060 s Exercise 22-1 (Algo) Responsibility accounting performance report LO P1 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Totals Controllable Costs Budgeted Actual Over (Under) Budget
Question 8 SP for Direct Labor per direct labor hour $1.70 Actual Direct Labor $12,960 SQ x SP for Direct Labor $11,560 Actual Direct Labor Hours 6,500 The standard quantity (SQ) of direct labor hours is: O 6500 O 7000 O 6800 O 7624 (rounded) O Cannot be determined.
Department Personnel Custodial Services Maintenance Printing Binding Personnel Custodial Services Maintenance Printing Binding Total budgeted cost Total Labor- Square Feet of Space Occupied Printing Department Binding Department Total hours Hours 16,000 8,200 14,300 30,600 108,000 177,100 Budgeted overhead costs in each department for the current year are shown below: $ 300,000 66,000 93,400 Req 1 Req 2 12,400 3,100 10,500 40,400 20,900 87,300 Machine-Hours 2,400 500 2,900 414,000 170,000 $ 1,043,400 Number of Employees 22 49 69 Req 3A 105 300 545 Because of its simplicity, the company has always used the direct method to allocate service department costs to the two operating departments. Machine- Hours Required: 1. Using the step-down method, allocate the service department costs to the consuming departments. Then compute predetermined overhead rates in the two operating departments. Use machine-hours as the allocation base in the Printing Department and direct labor-hours as the…
Direct costs Square footage Number of employees A Maintenance $126,000 800 $36,000 $42,750 Haman Resources $64,000 400 12 Q Zoom Mixing Finishing $105,000 $175,000 1,200 1,600 24 32 Lola Corporation consist of two service departments, Maintenance and Human Resources. John Company also has two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while Human Resources costs are allocated based on number of employees. The following information has been gathered for the current year: If the step-down method is used to allocate service department costs, and the Maintenance Department is allocated first, the amount of costs allocated from the Maintenance Department to the Mixing Department is B $63,000 $42,000
Details Product J Product G Product P Total Direct $25 $20 $11 $12,38,000 Material Cost Direct Labor 4/3 1 88,000 Hours Machine 4/3 1 76,000 Hours Direct Labor $8 $12 $6 Cost No. of 3 7 20 30 production run No. of 3 20 32 Deliveries No. of 15 35 220 270 Receipts (2*7) No. of 15 10 25 50 production orders Production 30,000 20,000 8,000 and sales units Raw material 11 usage units The total overhead costs is $18,48,000. Set-up 1.623377%, Machines 41.125541%, Receiving 23.538961%, Packing 13.528139% and Engineering 20.183983% of total overhead costs. The company operates a just-in-time inventory policy, and receives each component once per production per run. In the past the company has allocated overheads to products on the basis of direct labor hours. However, the majority of overheads are more closely related to machine hours than direct labor hours. The company has recently redesigned its cost system by recovering overheads using two volume-related bases: machine hours and materials…
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

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riginal cost lling hours used umber of employees hours used Billing $70,000 $119,000 2 HR 100 2 200 IT $95,000 1 200 Advisory $558,000 $837,000 $298,000 Audit 2,000 12 900 Tax 1,400 15 600 600 3 300 Totals $1,977,000 4,000 35 2,300