The plant manager of the Ohio factory is responsible for two cost centers, Clothing and Shoes. Responsibility accounting reports forthe Ohio factory (incomplete) and for the Shoes department (complete) followManager, Shoes DepartmentControllable CostsDirect materialsDirect laborSupplies usedTotalsSalaries, department managersRentBudgeted$ 32,00016,6008,400$ 57,000InsuranceClothing departmentShoes departmentTotalsComplete the report for the Ohio factory by determining the missing items. (Enter under-budget amounts with a minus sign.)Plant Manager, Ohio FactoryControllable CostsBudgetedActual$ 31,30017,40010,530$ 59,230SOver (Under)Budget$ (1,300)BOO2,130$1,63020,200 $8,7002.40040,200Actual Over (Under) Budget20,200 $8,7002,64039,110$ 129,100 $ 129,680 $0780

Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

The plant manager of the Ohio factory is responsible for two cost centers Clothing and Shoes. Responsibility accounting reports for the Ohio factory (incomplete) and for the Shoes department (complete) follow Manager, Shoes Department Controllable costs Direct materials Direct labor Supplies used Totals Salaries, department managers Rent Budgeted $ 32,000 16,600 8,400 $57,600 Insurance Clothing department Shoes department Totals Complete the report for the Ohio factory by determining the missing items. (Enter under-budget amounts with a minus sign.) Plant Manager, Ohio Factory Controllable Costs Budgeted Actual $31,300 S 17,400 10,530 $ 59,230 20,200 $ 8.700 2.400 40.200 S 129,100 S Over (Under) Budget $ (1,300) 800 2,130 $1,630 Actual Over (Under) Budget 20,200 $ 8,700 2.640 39,110 129,000 $ 780

The plant manager of the Ohio factory is responsible for two cost centers Clothing and Shoes. Responsibility accounting reports for the Ohio factory (incomplete) and for the Shoes department (complete) follow Manager, Shoes Department Controllable costs Direct materials Direct labor Supplies used Totals Salaries, department managers Rent Budgeted $ 32,000 16,600 8,400 $57,600 Insurance Clothing department Shoes department Totals Complete the report for the Ohio factory by determining the missing items. (Enter under-budget amounts with a minus sign.) Plant Manager, Ohio Factory Controllable Costs Budgeted Actual $31,300 S 17,400 10,530 $ 59,230 20,200 $ 8.700 2.400 40.200 S 129,100 S Over (Under) Budget $ (1,300) 800 2,130 $1,630 Actual Over (Under) Budget 20,200 $ 8,700 2.640 39,110 129,000 $ 780

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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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs From: Service department costs IT HR Total IT $ 0 16 $ 152,000 Required: Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. HR 1,525 0 $ 247,950 152,000 Answer is not complete. Cost Allocation To: IT HR 152,000 $ 247,950 Publishing 2,440 24 $ 431,000 $ 247,950 Publishing $ Binding 2,135 40 $ 392,500 0 Binding 0
Martay Creations produces winter scarves. The scarves are produced in the Cutting and Sewing departments. The Maintenance and Security departments support these production departments, and allocate costs based on machine hours and square feet, respectively. Information about each department is provided in the following table: Department Total Cost Number of Employees Machine Hours Square Feet Maintenance Department $2,200 5 40 600 Security Department 4,500 3 0 500 Cutting Department 21,200 21 3,600 2,400 Sewing Department 24,900 19 5,400 3,000 Using the sequential method and allocating the support department with the highest costs first, allocate all support department costs to the production departments. Then compute the total cost of each production department. Line Item Description CuttingDepartment SewingDepartment…
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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs. IT HR 0 16 1,525 0 Publishing 2,440 24 $ 152,000 $ 247,950 $ 431,000 Binding 2,135 40 $ 392,500 Woodstock Binding estimates that the variable costs in the IT Department total $112,500, and in the HR Department variable costs to $142,500. Avoidable fixed costs in the IT Department are $18,250. Required: If Woodstock Binding outsources the IT Department functions, what is the maximum it can pay an outside vendor without increasing total costs? Note: Do not round intermediate calculations. × Answer is complete but not entirely correct. Maximum…
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