RST LTD has two production departments: Machining and Finishing. There are three service departments: Human Resources (HR), Maintenance and Design. The budget costs in three service departments are as follows: HR Maintenance Design $ $ Variable 1,00,000 1,60,000 1,00,000 Fixed 4,00,000 3,00,000 6,00,000 5,00,000 4,60,000 7,00,000 The usage of these Service Department's output during the years just completed is as follows: Provision of Service Output ( in hours of service) Providers of Service Users of Service HR Maintenance Design HR Maintenance 500 Design Machining Finishing 500 500 4,000 3,500 4,500 5,000 10,000 4,000 1,500 Total 8,000 6,000 Required : (i) Use the direct method to re-apportion RST Ltd's service department cost to its production departments. Determine the proper sequence to use in re-apportioning the firm's service department (ii) cost by step-down method. Use the step-down method to reapportion the firm's service department cost according to (iii) Hours of Service

RST LTD has two production departments: Machining and Finishing. There are three service departments: Human Resources (HR), Maintenance and Design. The budget costs in three service departments are as follows: HR Maintenance Design $ $ Variable 1,00,000 1,60,000 1,00,000 Fixed 4,00,000 3,00,000 6,00,000 5,00,000 4,60,000 7,00,000 The usage of these Service Department's output during the years just completed is as follows: Provision of Service Output ( in hours of service) Providers of Service Users of Service HR Maintenance Design HR Maintenance 500 Design Machining Finishing 500 500 4,000 3,500 4,500 5,000 10,000 4,000 1,500 Total 8,000 6,000 Required : (i) Use the direct method to re-apportion RST Ltd's service department cost to its production departments. Determine the proper sequence to use in re-apportioning the firm's service department (ii) cost by step-down method. Use the step-down method to reapportion the firm's service department cost according to (iii) Hours of Service

Name: RST LTD has two production departments: Machining and Finishing. Ther
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: RST LTD has two production departments: Machining and Finishing. There are threeservice departments: Human Resources (HR), Maintenance and Design. The budget costs in threeservice departments are as follows:Design$HRMaintenance$$Variable1,00,0001,60

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $348,600 Number of purchase orders Scheduling 200,100 Number of production orders Materials handling 471,600 Number of moves Product development 741,200 Number of engineering changes Production 1,511,600 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,910 380 1,430 10 1,900 2,400 Tape drives 1,600 235 570 8,000 3,700 Wire drives 11,300 880 4,200 28 11,500 2,300 The activity rate for the procurement activity cost pool is Oa. $133.85 per purchase order Ob. $70.64 per purchase order Oc. S20.74 per purchase order Od. S233.18 per purchase order Previous Next Submit Test for…
IKAR, a small home furniture factory, operates with THREE production departments: Assembly, Polishing, and Packing and TWO service departments: Stores and Maintenance. For the forthcoming period, the total budgeted overhead costs are as follows: Allocated costs: Departments Indirect materials (RM) Indirect labor (RM) Assembly Polishing Packing Stores 3,800 4,630 2,120 900 9,900 8,180 6,200 4,760 5,800 Maintenance 120 The following factory overheads were obtained from the accounts relating to the period: RM 20,180 36,000 56,000 29,000 5,830 7,600 15,000 21,000 Heating and lighting Rent and rate Production supervision Plant depreciation Lubricant Office depreciation Direct labour Direct materials The following information is also available: Department Assembly Polishing Packing Stores Maintenance Number of Employees Floor Area (sq. metr.) 20 12 1150 1800 1250 1350 350 Machine hours 1200 2140 60 Direct labour hours 120 30 50 Plant's values (*000RM) 210 190 50 13 17 Required: Prepare an…
Dawson Company manufactures small table lamps and desk lamps. The following shows the activities per product and the total overhead information: Units Setups Inspections Assembly (dlh) 3,400 3,600 8,800 7,200 Small table lamps Desk lamps 8,400 14,000 43,200 43,200 Total Activity-Base Usage Budgeted Activity Cost 10,800 $109,080 22,400 114,240 75,600 340,200 Activity Setups Inspections Assembly (dlh) The total factory overhead (rounded to the nearest cent) to be allocated to each unit of small table lamps is O a. $80.47 O b. $136.80 O c. $48.28 O d. $104.61
4. Running Shorts Co. makes two products: A and B. In the folding department, budgeted information is as follows: Budgeted indirect labor costs in the workshop: $150,000 Budgeted depreciation expenses of equipment: $50,000 Budgeted direct labor costs: $100,000 Budgeted units produced: 50,000 The company allocates indirect labor costs based on direct labor costs and allocates depreciation expenses of equipment based on units produced. The actual direct labor costs for product A are $60,000 and 40,000 units of product A are produced. How much is the manufacturing overhead of product A in the folding department? 120,000 90,000 130,000 40,000
Please help me Thankyou.
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $364,200 Number of purchase orders Scheduling 243,400 Number of production orders Materials handling 417,300 Number of moves Product development 773,900 Number of engineering changes Production 1,428,300 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 4,120 270 1,500 11 2,200 2,100 Tape drives 2,400 245 500 7 8,500 3,500 Wire drives 11,500 790 3,500 21 10,700 2,400 The activity-based cost for each tape drive unit is Oa. $291.69 Ob. $239.52 Oc. $740.06 Od. $20.21
Haresh
Parker Company has two service departments, Cafeteria and Engineering, and two operating departments. The number of employees in each department is given below: Cafeteria 10 Engineering 40 Operating Department 1 500 Operating Department 2 200 The company uses the step method to allocate service department cost. Cafeteria is allocated first, and then Engineering. The costs of the Cafeteria are allocated to other departments on the basis of number of employees in the departments. If Cafeteria costs are budgeted at R69 375, the amount of cost allocated to Operating Department 2 would be closest to: A. R18 500 B. R18 750 C. R19 821 D. R46 875
Salsa has two service departments, the IT Department and HR Department. Salsa also has two production departments, the Cutting department and the Mixing Department. The usage of the two service departments’ output for the year is as follows: ---Provider of Service---- User of Service / IT /HR IT / - /15 % HR / 5 % / - Cutting / 45 % / 25 % Mixing / 50 % / 60 % The budgeted costs in the two service departments for the year as follows: IT: $ 400,000 HR: $ 600,000 Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of the two service departments to production departments.
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $302,300 Number of purchase orders Scheduling $220,600 Number of production orders Materials handling $416,500 Number of moves Product development $755,400 Number of engineering changes Production $1,551,600 Machine hours Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,160 380 1,320 11 1,900 1,600 Tape drives 2,500 155 770 6 9,900 4,000 Wire drives 12,700 770 3,900 23 10,400 2,700 Determine the activity rate per production order for…
Support department cost allocation-direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Janitorial Department Cafeteria Department Cost Driver Square footage to be serviced Number of employees Janitorial Department $300,000 Janitorial Department cost allocation Cafeteria Department cost allocation Cafeteria Department $170,000 4,700 2 44 8 Department costs Square feet Number of employees Allocate the support department costs to the production departments using the direct method. Cutting Department LA Cutting Department $1,500,000 2,400 21 $ Assembly Department SA Assembly Department $680,000 3,600 9 S < 11:15 PM 2/25/2024
III. Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Estimated overhead Direct labor hours Direct labor cost Machine hours Direct materials Direct labor cost Direct labor hours: Welding $ 220,000 $ 4,500 90,000 5,000 Welding Assembly Finishing Number of machine hours: Welding Assembly Finishing Assembly $ 62,000 10,000 $ 150,000 1,000 Currently, overhead is applied on the basis of machine hours using a plantwide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with…