Support Departments Producing Departments Human Resources $175,000 General Factory $360,000 Fabricating Assembly $114,000 $99,000 Direct costs Normal activity: Number of employees 50 70 160 Square footage 1,700 5,600 13,200 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion of Driver Used by Human Resources General Factory Fabricating Assembly Human Resources 0 0 General Factory X 0

Support Departments Producing Departments Human Resources $175,000 General Factory $360,000 Fabricating Assembly $114,000 $99,000 Direct costs Normal activity: Number of employees 50 70 160 Square footage 1,700 5,600 13,200 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion of Driver Used by Human Resources General Factory Fabricating Assembly Human Resources 0 0 General Factory X 0

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 2BE: Support department allocations The centralized computer technology department of Hardy Company has...

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Direct Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number of employees Square footage Support Departments Producing Departments Human Resources $160,000 General Factory $360,000 Fabricating Assembly $114,200 $95,000 60 45 80 1,500 6,000 14,000 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Chekov Company uses the direct method of support department cost allocation. Required: 1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent. Proportion of Driver Used by Human Resources Human Resources General Factory General Factory Fabricating Assembly 2. Using the direct method, allocate the costs of the…
Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments HumanResources GeneralFactory Fabricating Assembly Direct costs $165,000 $380,000 $114,200 $90,000 Normal activity: Number of employees — 40 70 150 Square footage 1,800 — 5,500 13,200 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded…
Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 47,000 37,000 270,000 320,000 Percentage Service Provided to S1 0% 20 S2 P1 20% 40% 20 0 P2 40% 60 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 $270,000 to $290,000?
Required information [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Department Service 1 (S1) Service 2 (S2) Production 1 (P1) Production 2 (P2) Cost $ 44,000 34,000 240,000 290,000 Service Department Cost Allocation Total Cost Percentage Service Provided to P1 S1 0% 20 S2 P1 20% 40% 0 20 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first? P2 40% 60 P2
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The estimated departmental manufacturing for producing departmenta A and Band the estimated costs of service departments C, D, and E (befor any service department allocations) are: Producing Department Service Department P120,000 180,000 P40,000 B D 40,000 E 20,000 The interdependence of the departments is as follows: Services Provided by Department D E Producing A Producing B Service C Service D Service E 30% 40% 50% 40 30 20 20 30 Marketing General office 20 10 100% 100% 100% Compute the final amount of estimated overhead of Service E after reciprocal transfer costs have been calculated algebraically. After computing the total factory overhead of each producing department and what amount of Department E cost is assigned to Marketing Department?
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 Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees JanitorialDepartment CafeteriaDepartment CuttingDepartment AssemblyDepartment Department costs $280,000 $200,000 $1,480,000 $660,000 Square feet 50 4,800 1,800 4,200 Number of employees 8 3 18 12 Allocate the support department costs to the production departments using the direct method. CuttingDepartment AssemblyDepartment Janitorial Department cost allocation $ $ Cafeteria Department cost allocation $ $
Sequential (Step) Method of Support Department Cost Allocation Chekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Number of employees Square footage Support Departments Producing Departments Human Resources General Factory Fabricating Assembly $150,000 $360,000 $120,900 $86,000 1,500 60 45 80 6,000 14,000 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Chekov Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to six significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations. Proportion…
The estimated departmental manufacturing for producing department A and B and the estimated costs of service departments C, D, and E (before any service department allocations) are: Producing Department Service Department A B P120,000 180,000 P40,000 40,000 20,000 D E The interdependence of the departments is as follows: Services Provided by Department Producing A Producing B Service C Service D Service E Marketing General office D E 30% 40% 50% 40 30 20 20 10 20 10 100% 100% 100% Compute the final amount of estimated overhead of Service E after reciprocal transfer costs have been calculated algebraically. After computing the total factory overhead of each producing department and what amount of DepartmentE cost is assigned to Marketing Department?
Support department cost allocation-sequential 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 Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet Number of employees 50 5,000 1,000 4,000 10 30 10 Allocate the support department costs to the production departments using the sequential method. Allocate the support department with the highest department cost first. Cutting Assembly Department Department Janitorial Department Cafeteria Department
Assume the following information in the chart: Security Dept. Cafeteria Dept. 1,000 square feet 4,000 square feet 10 employees 6 employees $100,000 cost $200,000 cost Production B Dept. 3,000 square feet 50 employees $300,000 cost Using the reciprocal services method, what is the total security costs before being allocated over to the production departments? $125,000 $110,000 $120,000 O $100,000 Production A Dept. 3,000 square feet 40 employees $400,000 cost
Allocate the service cost using the Direct method.