Accounting question please given answer The East and West Railroad has 2 divisions. The company recently invested $800,000 tomaintain its railroad track and pertinent data for the two divisions are as follows:Total Miles TraveledEast Division 800,000 milesWest Division 1,200,000 mileWhat is the amount of track improvement cost that should be allocated to the WestDivision?

Step 1: Define Joint CostIf a company have production of multiple products some expenses of the…

Answered: The East and West Railroad has 2…

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 18E

See similar textbooks

Similar questions

Below is a project WBS with cost apportioned by percent. If the total project cost is estimated to be $650,000, what are the estimated costs for the following deliverables? (Round the final answers to the nearest dollar.) Definition 10% Router systems project $650,000 Implementation 47% Objectives Requirements Inputs Outputs Files Interfaces Programming In-house testing Customer testing and review 3% 7% 3% 4% 5% 9% 22% 38% 9% a. Design? b. Programming? C. In-house testing? Design 43%
Division A makes a part with the following characteristics: **USE IMAGE ATTAHCED TO SEE** a) Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division A is currently selling 10,000 units to its outside customers. What should be the lowest acceptable transfer price from the perspective of Division A? b}Refer back to your answer in the last problem. Division B is now purchasing these parts from an outside supplier at a price of $24 each. If Division B begins to purchase the 5,000 parts from Division A rather than the outside supplier, what is the company as a whole change in net income? c} Division B, another division of the same company, would like to purchase 5,000 units of the part each period from Division A. Division A is currently selling 10,000 units to its outside customers. IF the transfer is made, variable costs will decrease by $2 per unit. What should be the lowest acceptable transfer price…
Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Total Facility locatión Kentucky Arizona Illinois New product $ 62,587,200 $ 100,360,000 $ 77,772,800 $ 240,720,000 revenue Research & $ 60,360,000 Development Using revenue as an allocation base, the amount of costs allocated to the Kentucky research facility is calculated to be: Multiple Choice $24,072,000. $15,693,600. $244,504,000. $9,018,000. $18,036,000.
The materials used by Hibiscus Company Division A are currently purchased from outside supplier at $53 per unit. Division B is able to supply Division A with 12,400 units at a variable cost of $47 per unit. The two divisions have recently negotiated a transfer price of $48 per unit for the 12,400 units. (a) By how much will each division's income increase as a result of this transfer? Enter an increase as a positive number and a decrease as a negative number. Division A $fill in the blank 1 Division B $fill in the blank 2 (b) What is the total increase in income for Hibiscus Company? $fill in the blank 3
When using the reciprocal method to allocate support costs, which of the following equations represents the two algebraic expressions needed for the total costs of a Custodial Department (C) that includes not only $120,000 of direct costs but also 15% of the Maintenance Departments (M) cost and the Maintenance Department that consists of $10,000 of direct costs and $40% of the Custodial Department? Question options: a) C = $120,000 + (.15 x M) and M = $10,000 + (.40 x C). b) C = $120,000 + (.15 ÷ M) and M = $10,000 + (.40 ÷ C). c) C = $120,000 – (.15 x M) and M = $10,000 – (.40 x C). d) C = ($120,000 x .15) + M and M = ($10,000 x .40) + C.
Patron Bhd. is a company operating in an upstream exploration and production, focusing on the acquisition, exploration and development of properties for the production of crude oil and natural gas from underground reservoirs. The company has two divisions: Transportation and Refining. Transportation division purchases crude oil in shallow waters offshore of Peninsular Malaysia and sends it to Melaka oil refinery. Refining division processes crude oil into gasoline. The following data is available for both divisions: Transportation Division: Variable cost per barrel of crude oil RM 350.00 Fixed cost per barrel of crude oil 150.00 Total 500.00 Refining Division: RM Variable cost per barrel of gasoline 700.00 Fixed cost per barrel of gasoline Total 500.00 1,200.00 Additional information: * The company pipeline can carry 55,000 barrels per day. The external market price for supplying crude oil per barrel is RM750.00. * The Refining Division of Patron Bhd. is currently purchasing crude oil…
The direct cost for an activity in a project i $50000. The total direct cost for this project is $55,000,000 and the total direct cost for all projects for this contractor is $100,000,000. Assume that the overhead for this project is $1,000,000 and the company's general overhead is $4,000,000. Calculate the general overhead for this project assuming a balance bid?
The following information relates to Excalibur Delivery Services: Year 1: Total miles driven 615,000Year 1: Total operating costs $211,500Year 2: Total miles driven 935,000Year 2: Total operating costs $275,500 Use the high-low method to calculate Excalibur’s total fixed costs.
Barrington Box Enterprises has two divisions, large and small, that share the common costs of the company's communications network. The annual common costs are $4,800,000. You have been provided with the following information for the upcoming year: Large Small Calls 150,000 90,000 The cost accountant determined $2,760,000 of the communication network's costs were fixed and should be allocated based on the number of calls. The remaining costs should be allocated based on the time on the network. What is the total communication network costs allocated to the Large Box Division, assuming the company uses dual-rates to allocate common costs? Multiple Choice $2,760,000 $2,259,000 $2,541,000 Time on Network (hours) 160,000 240,000 $1,640,000
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 and Percent Allocable to $2 20% Costs Incurred Department $1 $200,000 500,000 d. 62.5% $2 50% 2. Using the direct method, what proportion of S1's costs will be allocated to M2! a 20% b. 37.5% C. $295,400 d. $302,500 3. Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250 b. $205,750 c. $308,750 d. $326,450 4. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000 b. $265.700 a. S1-$290,000+ 0.5 × $2 b. S1-$290,000+ 0.2 × S2 c. S1-$290,000+ 0.3 × $2 715473_1&course_id=_31557 M1 M2 expressed? Using the reciprocal method, how should the total service department costs of S1 be E d. S1 - $500,000+ 0.5 × $2 Matching.docx 6. Using the reciprocal method, how much of the service department costs will be…
Assume that Division A has a product that can be sold either to Division B of the same company or to outside customers. The managers of both divisions are evaluated based on their own division's return on investment (ROI). The managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated. Division A: Capacity in units = 300,000 Number of units now being sold to outside customers = 300,000 Selling price per unit on the outside market = $41 Variable costs per unit = $19 Fixed costs per unit (based on capacity) = 12 Division B: Number of units needed annually = 100,000 Purchase price now being paid to an outside supplier = $38 Assume that Division A can avoid $6 per unit in variable costs on any sales to Division B. Which one of the following statements is most correct regarding the division managers' response to the opportunity for the internal transfer? the managers will not agree to a transfer the managers will agree to a transfer at…
Company E has two divisions, Division A and Division B. Division A is currently buying Component X from an external seller for $12. Division B produces Component X and has excess capacity. Using the following data, what would the transfer price per unit if Division A purchased Component X from Division B at the market-based transfer price? • Variable cost per unit $10 • Fixed cost per unit 1.16 • Division B sales price of Component X 14.50

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

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

Publisher:

South-Western College Pub

SEE MORE TEXTBOOKS