Sequential Method Belami Company manufactures both shampoo and conditioner, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Overhead Square feet Machine hours Purchase orders Support Departments General Factory $316,000 Power $80,000 3,000 20 1,403 Producing Departments 40 Purchasing Shampoo Conditioner $165,000 $78,800 9,600 3,000 1,345 8,000 $107,700 60 The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-square feet; and purchasing-purchase orders. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. 8,400 24,000 120

Sequential Method Belami Company manufactures both shampoo and conditioner, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Overhead Square feet Machine hours Purchase orders Support Departments General Factory $316,000 Power $80,000 3,000 20 1,403 Producing Departments 40 Purchasing Shampoo Conditioner $165,000 $78,800 9,600 3,000 1,345 8,000 $107,700 60 The company does not break overhead into fixed and variable components. The bases for allocation are power-machine hours; general factory-square feet; and purchasing-purchase orders. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. 8,400 24,000 120

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 1PB: Support department cost allocation Hooligan Adventure Supply produces and sells various outdoor...

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Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400
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Sequential Method Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power GeneralFactory Purchasing Pesticide LiquidFertilizer Overhead $90,000 $314,000 $167,000 $78,900 $107,800 Square feet 1,500 — 1,500 4,200 4,800 Machine hours — 1,403 1,345 24,000 8,000 Purchase orders 20 40 7 120 60 The company does not break overhead into fixed and variable components. The bases for allocation are power—machine hours; general factory—square feet; and purchasing—purchase orders. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to…
Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows:                             Support Department    -              Producing Departmen                  Power, Gen. Factory, Purchasing       Pesticide,, Liquid Fertilitzer Overhead 90,000   314,000       167,000              78,900    107,800 Sq. Ft         1,500      ---               1,500                    4,200     4,800 Machine Hr ----         1,403        1,345                 24,000       8,000 Purch orders 20      40                  7                       120            60 The company does not break overhead into fixed and variable components. The bases for allocation are power—machine hours; general factory—square feet; and purchasing—purchase orders. Instructions: 1) Allocate the…
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Jasmine Company manufactures both pesticide and liquid fertilizer, with each product manufactured in separate departments. Three support departments support the production departments: Power, General Factory, and Purchasing. Budgeted data on the five departments are as follows: Support Departments Producing Departments Power GeneralFactory Purchasing Pesticide LiquidFertilizer Overhead $90,000 $314,000    $167,000    $78,900 $107,800 Square feet 1,500 —    1,500    4,200 4,800 Machine hours — 1,403    1,345    24,000 8,000 Purchase orders 20    40    7    120 60 The bases for allocation are power—machine hours; general factory—square feet; and purchasing—purchase…
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Renats Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet Asset values $ 18,358 4,148 Department Materials Personal Manufacturing Packaging Total Supervision expences Department Materials Personnel Manufacturing Packaging Totals Utilitiec The four departments share the following Indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Cost Allocation Base Supervision utilities $82,880 Number of employees 59,888 Square feet occupied 27,880 Asset values $ 168,000 Insurance Total Department Materials Personnel Manufacturing Packaging Allocate each of the three Indirect expenses to the four departments. Totals 58 Incurance Department Materials Personnel Manufacturing Packaging 8 70 64 Totals 66,500 9,500 95,000 19,808 198,800 Allocation Base 38,648 15,878 $ 69,000 Allocation Bate Allocation Base Percent of Allocation Baca Numerator Denominator of Total Percent…
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