TB MC Qu. 11-236 (Algo) The Downstate Block Company has a trucking... The Downstate Block Company has a trucking department that delivers crushed stone from the company's quarry to its two cement block production facilities-the West Plant and the East Plant. Budgeted costs for the trucking department are $400,000 per year in fixed costs and $.30 per ton variable cost. Last year, 78,000 tons of crushed stone were budgeted to be delivered to the West Plant and 119,000 tons of crushed stone to the East Plant. During the year, the trucking department actually delivered 87,000 tons of crushed stone to the West Plant and 106,000 tons to the East Plant. Its actual costs for the year were $78,000 variable and $415,000 fixed. The level of budgeted fixed costs is determined by peak-period requirements. The West Plant requires 40% of the peak-period capacity and the East Plant requires 60%. The company allocates fixed and variable costs separately. For performance evaluation purposes, how much of the actual trucking department cost should not be charged to the plants at the end of the year? Multiple Choice O O $15,000 $35,100 $0 $20,100

Subject : Accounting

A company has a Trucking Services Department that provides transportation to haul a rare mineral from the company's mine to its two mills-the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department consists of $0.32 per ton variable cost and $355,000 of fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 70% of the Trucking Services Department's capacity and the Southern Plant requires 30%. During the year, the Trucking Services Department actually hauled 120,000 tons of mineral to the Northern Plant and 60,000 tons to the Southern Plant. The Trucking Services Department incurred $384,000 in cost during the year, of which $54,000 was variable cost and $330,000 was fixed cost. How much of the Trucking Services Department's variable costs should be charged to the Northern plant? O $36,000 O $38,400 O $57,600 O None of the listed answers O $28,800 How much of the Trucking…

es Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company's mine to its two steel mills-the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $320,500 per year, consisting of $0.25 per ton variable cost and $270,500 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 68% of the Transport Services Department's capacity and the Southern Plant requires 32%. During the year, the Transport Services Department actually hauled 112,000 tons of ore to the Northern Plant and 62,700 tons to the Southern Plant. The Transport Services Department incurred $366,000 in cost during the year, of which $53,600 was variable cost and $312,400 was fixed cost. Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the Transport Services Department's fixed costs…

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Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $167,300 per year, consisting of $0.19 per ton variable cost and $117,300 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 53% of the Transport Services Department’s capacity and the Southern Plant requires 47%. During the year, the Transport Services Department actually hauled 123,000 tons of ore to the Northern Plant and 55,900 tons to the Southern Plant. The Transport Services Department incurred $377,000 in cost during the year, of which $53,100 was variable cost and $323,900 was fixed cost. Required: How much of the Transport Services Department’s variable costs should be charged to each plant? How much of the Transport Services Department’s fixed costs should…

Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company's mine to its two steel mills-the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $309,500 per year, consisting of $0.23 per ton variable cost and $259,500 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 67% of the Transport Services Department's capacity and the Southern Plant requires 33%. During the year, the Transport Services Department actually hauled 120,000 tons of ore to the Northern Plant and 68,400 tons to the Southern Plant. The Transport Services Department incurred $368,000 in cost during the year, of which $53,800 was variable cost and $314.200 was fixed cost. Required: 1. How much of the Transport Services Department's variable costs should be charged to each plant? 2. How much of the $314,200 in fixed cost should be charged to each…

Biotechtron, Inc., has two research laboratories in the Southwest, one in Yuma, Arizona, and the other in Bernalillo, New Mexico. The owner of Biotechtron centralized the legal services function in the Yuma office and had both laboratories send any legal questions or issues to the Yuma office. The legal services support center has budgeted fixed costs of 160,000 per year and a budgeted variable rate of 65 per hour of professional time. The normal usage of the legal services center is 2,600 hours per year for the Yuma office and 1,400 hours per year for the Bernalillo office. This corresponds to the expected usage for the coming year. Required: 1. Determine the amount of legal services support center costs that should be assigned to each office. 2. Since the offices produce services, not tangible products, what purpose is served by allocating the budgeted costs? 3. Now, assume that during the year, the legal services center incurred actual fixed costs of 163,000 and actual variable costs of 272,400. It delivered 4,180 hours of professional time2,580 hours to Yuma and 1,600 hours to Bernalillo. Determine the amount of the legal services centers costs that should be allocated to each office. Explain the purposes of this allocation. 4. Did the costs allocated differ from the costs incurred by the legal services center? If so, why?

The activity of moving materials uses four forklifts, each leased for 18,000 per year. A forklift is capable of making 5,000 moves per year, where a move is defined as a round trip from the plant to the warehouse and back. During the year, a total of 18,000 moves were made. What is the cost of the unused capacity for the moving goods activity? a. 5,400 b. 1,800 c. 7,200 d. 3,600