The costs allocated to each cost center are as follows:Q3:Cost Centers/CostsProduction DepartmentService DepartmentTotal CostYABTotal of Primary DistributionThere is a reciprocal relationship between cost centers. X Service Cost center basedon the number of workers, Y Service Cost center will be apportioned on the base of40.000 45.000 55.000 8.000 7.160155.500m2.ABXYTotalNumber of Workersm21524.5001141.350762.70020450383004009.300a) Calculate the benefits received from each service department.b) Calculate the X Service Center's total cost subject to re-distribution.c) Calculate the Y Service Center's total cost subject to re-distribution.d) Re-allocate the cost of service cost centers

Cost Allocation - It is the process of identifying, combining and assigning cost to different…

The costs allocated to each cost center are as follows: Q3: X Y Total of Primary Distribution 40.000 45.000 55.000 8.000 7.160 Cost Centers/Costs Production Department A Service Department Total Cost 155.500 There is a reciprocal relationship between cost centers. X Service Cost center based on the number of workers, Y Service Cost center will be apportioned on the base of m2. Number of Workers m2 A 152 4.500 B 114 1.350 76 2.700 20 450 Y 38 300 Total 400 9.300 a) Calculate the benefits received from each service department. b) Calculate the X Service Center's total cost subject to re-distribution. c) Calculate the Y Service Center's total cost subject to re-distribution. d) Re-allocate the cost of service cost centers

The costs allocated to each cost center are as follows: Q3: X Y Total of Primary Distribution 40.000 45.000 55.000 8.000 7.160 Cost Centers/Costs Production Department A Service Department Total Cost 155.500 There is a reciprocal relationship between cost centers. X Service Cost center based on the number of workers, Y Service Cost center will be apportioned on the base of m2. Number of Workers m2 A 152 4.500 B 114 1.350 76 2.700 20 450 Y 38 300 Total 400 9.300 a) Calculate the benefits received from each service department. b) Calculate the X Service Center's total cost subject to re-distribution. c) Calculate the Y Service Center's total cost subject to re-distribution. d) Re-allocate the cost of service cost centers

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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K In the equation y = $7.20x + $250,250, O A. $250,250 are the total costs. OB. $250,250 are the total fixed costs. OC. $250,250 are the total overhead costs. OD. $250,250 are the total variable costs. 4
Departmental Cost Allocation Robinson Products Company has two service departments(S1 and S2) and two production departments (P1 and P2). The distribution of each service department’s efforts (in percentages) to the other departments is:ToFrom S1 S2 P1 P2S1 — 10% 20% ?%S2 10% — ? 30The direct operating costs of the departments (including both variable and fixed costs) are:S1 $180,000S2 60,000P1 50,000P2 120,000Required1. Determine the total cost of P1 and P2 using the direct method.2. Determine the total cost of P1 and P2 using the step method.3. Determine the total cost of P1 and P2 using the reciprocal method.
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Original costs Proportion of Administrative hours used Proportion of Information Systems hours used Proportion of Maintenance hours used (a) Total costs Administrative Institutional $77,000 0.20 Operating Segments 0.10 Support Departments Information Systems Maintenance $110,600 $62,000 0.10 Retail 0.10 0.10 0.10 Operating Segments Institutional Retail $649,000 $351,000 0.45 0.40 Determine the total costs that each operating segment would be accountable for if support costs are allocated using the direct method. (Round interme 0.30 0.35 0.30 0.50
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Consider the following information: Costs Activity (hours) $ 51,000 40,000 $ 50,000 41,000 $ 58,000 42,000 $ 56,000 43,000 What cost and activity would be used as the high data point in high-low cost estimation? Multiple Choice None of these. $58,000 and 42,000 hours $58,000 and 43,000 hours $56,000 and 43,000 hours $56,000 and 42,000 hours
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