The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. (Do not round your intermediate calculations.) Purchasing Maintenance Fabrication Assembly Operating costs No. of purchase orders Sq.ft. of space a. $17,600. b. $8,800. c. $13,200. d. $13,800. e. $32,200. $46,000 $26,400 $110,000 $76,000 14 6 4,000 2,000

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. (Do not round your intermediate calculations.) Purchasing Maintenance Fabrication Assembly Operating costs No. of purchase orders Sq.ft. of space a. $17,600. b. $8,800. c. $13,200. d. $13,800. e. $32,200. $46,000 $26,400 $110,000 $76,000 14 6 4,000 2,000

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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In each blank next to the following types of indirect expenses and service department expenses, place the identifying letter of the best allocation basis to use to distribute it to the departments indicated. 1. Computer service expenses of production scheduling for operating departments. 2. General office department expenses of the operating departments. 3. Maintenance department expenses of the operating departments. 4. Electric utility expenses of all departments. A. Relative number of employees. B. Proportion of total time in each department for maintenance. C. Proportion of floor space occupied by each department. D. Proportion of total processing time for each operating department.
Support department cost allocation Hooligan Adventure Supply produces and sells various outdoor equipment. The Molding and Assembly production departments are supported by the Personnel and Maintenance departments. Personnel costs are allocated to the production departments based on the number of employees, and Maintenance costs are allocated based on number of service calls. Information about these departments is detailed in the following table: Instructions 1. Assuming that Hooligan Adventure Supply uses the sequential method to allocate its support department costs, which support department does it most likely allocate first? 2. Based on your response in part (1), determine the total costs allocated from each support department to each production department using the sequential method. 3. If Hooligan Adventure Supply wanted to use a more accurate support department cost allocation method, which method should it choose? What might discourage the company from using this method?
Distribution of service department costs to production departments using the sequential distribution method Required: Using the information in P4-6, prepare a schedule showing the distribution of the service departments’ expenses using the sequential distribution method in the order of number of other departments served. (Hint: First distribute the service department that services the greater number of other departments.)
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1. Using the weighted average method, prepare the following for Department A: (a) aphysical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs(Note: Round to four decimal places.), (d) cost of EWIP and cost of goods transferredout, and (e) a cost reconciliation.2. Prepare journal entries that show the flow of manufacturing costs for Department A. Usea conversion cost control account for conversion costs. Many firms are now combiningdirect labour and overhead costs into one category. They are not tracking direct labourseparately. Offer some reasons for this practice.
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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Employees Square Feet 66,500 Asset Values Materials 58 $ 10,350 Personnel 8 Manufacturing Packaging 9,500 95,000 19,000 4,140 38,640 70 64 15,870 Total 200 190, 000 $ 69,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Cost Allocation Base Supervision $ 82,000 Number of employees 59,000 Square feet occupied 27,000 Asset values Utilities Insurance Total $ 168,000 Allocate each of the three indirect expenses to the four departments.
All applicable Exercises are available with McGraw-Hill’s Connect™Accounting.Cost classifications For each of the following costs, check the column(s) that most likely apply:Cost Variable FixedWages of assembly-line workersDepreciation—plant equipmentGlue and threadShipping costsRaw materials handling costsSalary of public relations managerProduction run setup costsPlant utilitiesElectricity cost of retail storesResearch and development expense
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Provide general discussion on predetermined variable overhead criterion and its possible dependence on the activity for which it is used. Provide a variable costing income statement in which variable overhead is divided among different activities, and that each activity has its own predetermined variable overhead criterion. The following is a partially completed lower section of a departmental expense allocation for Cozy Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five (5) departments. Allocate the expenses of the two service departments (advertising and purchasing) to the three operating departments and provide the complete income statement. Advertising and purchasing department expenses are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows.
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A report prepared periodically for each processing department and which summarizes (a) the units for which the department is accountable and the disposition of these units and (b) the production costs incurred by the department and the allocation of those costs is called a cost of production report