Spartans Inc. has three operating departments that receive support from Quality Control (Support).Below is the number of inspections department plans to use (Expected Usage) and its actual usage forthe month.Dept ADept BDept CExpected Usage130190140Actual Usage185150125Quality Control can provide up to 500 inspections each month. Estimated its support costs are asfollows:Fixed Costs$45,000Variable Costs$45 per inspectionSpartans Inc. estimates costs based on Practical Capacity. For the single-rate method costs areallocated based on actual usage. For the dual-rate method variable costs are allocated based on actualusage and fixed costs are allocated based on expected usage.If Spartans Inc. uses a Dual Rate based on Practical Capacity, how much support costs will beunallocated?

Spartans Inc. Support Cost Allocation with Unallocated Cost Calculation (Dual Rate Method)We'll…

Answered: Spartans Inc. has three operating…

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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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,920 Classroom supplies $ 300 Utilities $ 1,250 $ 55 Campus rent $ 4,900 Insurance $ 2,200 Administrative expenses $ 3,700 $ 42 $ 6 For example, administrative expenses should be $3,700 per month plus $42 per course plus $6 per student. The company’s sales should average $850 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 62 students. The actual operating results for September…
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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Fixed Cost per Month Cost per Course Student 2,940 $ 290 1,210 $ 50 4,700 2,200 3,700 $ 46 $ For example, administrative expenses should be $3,700 per month plus 546 per course plus $4 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below. Revenue Actual 50,780 Instructor wages $ 11,040…
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,930 Classroom supplies $ 270 Utilities $ 1,230 $ 65 Campus rent $ 5,200 Insurance…

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