Use the following information to answer questions 2 through 6:M2). The following information is available.A company has two service departments (S1 and 52) and two manufacturing divisions (M1 andPercent Allocable to$220%CostsIncurred Department $1$200,000500,000d. 62.5%$250%2. Using the direct method, what proportion of S1's costs will be allocated to M2!a 20%b. 37.5%C. $295,400d. $302,5003. Using the direct method, how much of the service department costs will be allocated to M1?a. $195,250b. $205,750c. $308,750d. $326,4504. Using the step method, how much of the service department costs will be allocated to M1?a. $243,000b. $265.700a. S1-$290,000+ 0.5 × $2b. S1-$290,000+ 0.2 × S2c.S1-$290,000+ 0.3 × $2715473_1&course_id=_31557M1 M2expressed?Using the reciprocal method, how should the total service department costs of S1 beEd. S1 - $500,000+ 0.5 × $2Matching.docx6. Using the reciprocal method, how much of the service department costs will be allocated toa $241.0006. $286.000c. $304.000$403.000The the following information to answer questions. 7 through 0When finished, make sure to click Submit.Optionally, click Save as Draft to save changes and continue working later, or click Cancel to quit without saving changO 81 40

Direct method and step down allocation method are two ways to allocate cost of service departments…

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Service Department $1 Percent Allocable to ŠK1 20% MD direct method, what proportion of $1's costs will be allocated to M

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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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

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MSRP $5.39 $4.99 Volume Discount 35% 35% Unit Cost $1.49 $1.49 Promotional Allowance 15% 20% Advertising and Promotion $25 Million $20 Million Allocated Fixed Costs $68 M $12 M Projected Unit Sales 115M 10M A firm has an existing product with a combined advertising and promotion budget of $25.0 million and with projected sales of 115 million units. They are launching a new product with a budget of $20.0 million and estimated sales of 10 million units in the first year. The sales force expense of $10 million has been allocated equally between products; 90% of the plant overhead has been allocated to the existing product, and 10%, to the new product. Additional values for each product are shown in the table above. 1. Production anticipates it will need to increase capacity to 140 million units, adding $10.0 million to annual fixed costs. If the product allocation of the plant cost is also changed to 80%/20%, what is the impact on break-even units? Please use the chart…
Question 15 nts View Policies Current Attempt in Progress The direct materials budget shows: upport Desired ending direct 48000 pounds materials 66000 pounds Total materials required 60200 pounds Direct materials purchases The total direct materials needed for production is 5800 pounds. O 126200 pounds. O 18000 pounds. O 12200 pounds. hp tsd Ins prt sc 19 fil 44 & 5 7 Y D
Multiple Choice $0. $42,588.00. $41,067.00. $43,077.27.
7. Division X produces a single product for both Division Y and an external market. It has spare capacity to produce another 20,000 items. Additional details for Division X are as follows: Information for Division X Price of product sold to outside market Current transfer price Variable cost per item made in division Fixed costs per item (based on budget) Division Y has requested a further 5,000 items. £25 £20 £12 £6 What is the minimum price that Division X should ask per item? (a) £12 (b) £18 (c) £20 (d) £25
sd subject-Accounting
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