None The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the divisionwere budgeted for 2022 at $1,250,000. The only variable costs budgeted for the division were cost ofgoods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at$130,000 for cost of goods sold, $120,000 for selling and administrative costs, and $95,000 fornoncontrollable fixed costs. Actual results for these items were as follows:InstructionsSales$1,175,000Cost of goods soldVariable545,000Fixed140,000Selling and administrativeVariable82,000Fixed100,000Noncontrollable fixed105,000(a) Prepare a responsibility report for the Real Estate Products Division for 2022.(b) Compute ROI assuming the division is an investment center, and average operating assets were$1,200,000.

a.) Responsibility Report for Real Estate Products Division for 2022DescriptionAmount…

Answered: The Real Estate Products Division of…

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...

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Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for the next year: If Adam uses the step-down (sequential) method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: a. 407,500. b. 422,750. c. 442,053. d. 445,000.
At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
The Real Estate Products Division of Ivanhoe Co. is operated as a profit center. Sales for the division were budgeted for 2022 at $1,260,000. The only variable costs budgeted for the division were cost of goods sold ($618,000) and selling and administrative ($84,000). Fixed costs were budgeted at $136,000 for cost of goods sold, $126,000 for selling and administrative costs, and $99,000 for noncontrollable fixed costs. Actual results for these items were as follows: Sales Cost of goods sold Variable Fixed $1,187,572 551,000 150,000 Selling and administrative Variable Fixed 90,000 104,000 Noncontrollable fixed 109,000 Prepare a responsibility report for the Real Estate Products Division for 2022. (List variable costs before fixed costs.) IVANHOE CO. Real Estate Products Division Responsibility Report 2022 Budget $ $ Actual $ Difference Favorable (F) Unfavorable (U) Not Applicable (NA
The sports equipment division of Kevin Hall Company is operated as a profit centre. Sales for the division were budgeted for 2022 at $896,000. The only variable costs budgeted for the division were cost of goods sold ($442,000) and selling and administrative costs ($64,000). Fixed costs were budgeted at $102,000 for cost of goods sold, $92,000 for selling and administrative costs, and $75,000 for noncontrollable fixed costs. Actual results were as follows: Sales $864,000 Cost of goods sold Variable 416,000 Fixed 106,000 Selling and administrative costs Variable 65,000 Fixed 73,000 Noncontrollable fixed costs 91,000 Assume the division is an investment centre, and average operating assets were $1,000,000. What is ROI?
The Camping Division of JA Company is operated as a profit center. Sales for the division were budgeted for 2020 at $694,000, The only variable costs budgeted for the division were cost of goods sold ($342,000) and selling and administrative ($48,000). Fixed costs were budgeted at $79,000 for cost of goods sold, $71,000 for selling and administrative, and $68,000 for noncontrollable fixed costs. Actual results for these items were: Sales $673,000 Cost of goods sold Variable 318,000 Fixed 84,000 Selling and administrative Variable 49,000 Fixed 52,000 Noncontrollable fixed 68,000
C. The Motorcycle Division of Maliha Co. is operated as a profit center. Sales for the division were budgeted for 2020 at $1,250,000. The only variable costs budgeted for the division were cost of goods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for cost of goods sold, $120,000 for selling and administrative and $95,000 for noncontrollable fixed costs. Actual results for these items were: Sales $1,175,000 Cost of goods sold Variable 545,000 Fixed 140,000 Selling and administrative Variable 82,000 Fixed 100,000 Noncontrollable fixed 105,000 Instructions (a) Prepare a responsibility report for the Motorcycle Products Division for 2020. (b) Assume the division is an investment center, and average operating assets were $1,200,000. Compute ROI.
The Real Estate Products Division of McKenzie Co. is operated as a profit center. Sales for the division were budgeted for 2016 at $1,250,000. The only variable costs budgeted for the division were cost of goods sold ($610,000) and selling and administrative ($80,000). Fixed costs were budgeted at $130,000 for cost of goods sold, $120,000 for selling and administrative and $95,000 for noncontrollable fixed costs. Actual results for these items were: Sales $1,175,000 Cost of goods sold Variable 545,000 Fixed 140,000 Selling and administrative Variable 82,000 Fixed 100,000 Noncontrollable fixed 105,000 Instructions (a) Prepare a responsibility report for the Real Estate Products Division for 2016. (b) Assume the division is an investment center, and average operating assets were $1,200,000. Compute Return On Investment(ROI).
One division of Heartwood Cabinets anticipates the following costs for the next year: Cost Budget Facilities rent $ 72,000 Utilities $ 28,000 Taxes $ 17,000 Wages for production workers $ 555,000 Management salaries and benefits $ 320,000 Wages for shipping and handling workers $ 256,000 Direct materials for cabinets $ 350,000 Supplies $ 38,000 Indirect materials $ 120,000 Equipment rental $ 32,000 Advertising $ 25,000 Repairs and maintenance $ 36,000 Travel $ 95,000 The company uses machine hours as the sole cost driver of variable overhead. Based on prior years, Heartwood estimates it will take 0.30 of machine hours per cabinet produced. Budgeted output is 75,000 cabinets. Actual output is 73,000 cabinets and it really takes 0.40 machine hours to produce one cabinet. Actual variable overhead costs are $474,500. Actual fixed overhead costs are $600,000. Required: Calculate budgeted variable overhead for the year. Calculate the variable overhead…
Nanda Company has two service departments, Maintenance and Personnel. Maintenance Department costs of P160,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of P40,000 are allocated based on the number of employees. The costs of operating departments A and B are P80,000 and P120,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Departments Maintenance A B Department Budgeted costs P160,000 P40,000 P80,000 P120,000 Budgeted ΝΑ 400 480 320 maintenance-hours Number of employees 20 ΝΑ 80 240 Using the step-down method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up) Personnel Department
The fixed costs of operating the Bunatta Corp. are $4,800,000 annually. Variable costs are incurred at the rate of $25 per maintenance-hour. On average, the company incurs 38,000 maintenance-hours per year. Budgeted and actual hours per user for 2019 are as follows: Assume that budgeted maintenance-hours are used to calculate the allocation rates. Using a single-rate allocation and budgeted usage, how much will each department be allocated? Using a dual-rate allocation with fixed costs allocated according to budgeted hours and variable costs allocated to actual hours, how much overhead will each department be allocated?
Gulf States Manufacturing has the following data from year 1 operations, which are to be used for developing year 2 budget estimates: Sales revenues (37,500 units) $ 2,500,000 Manufacturing costs Materials $ 400,000 Variable cash costs 545,000 Fixed cash costs 216,000 Depreciation (fixed) 267,000 Marketing and administrative costs Marketing (variable, cash) 285,000 Marketing depreciation 67,800 Administrative (fixed, cash) 270,300 Administrative depreciation 25,200 Total costs $ 2,076,300 Operating profits $ 423,700 All depreciation charges are fixed. Old manufacturing equipment with an annual depreciation charge of $29,100 will be replaced in year 2 with new equipment that will incur an annual depreciation charge of $42,000. Sales volume and prices are expected to increase by 8 percent and 3 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 6 percent and variable…
Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales—$1,935,600 budget, $2,243,000 actual; variable costs—$1,016,200 budget, $1,051,200 actual; and controllable fixed costs—$297,600 budget, $303,400 actual.Prepare a responsibility report for the Water Division for the year ending December 31, 2020. TORRES COMPANYWater DivisionResponsibility ReportFor the Year Ended December 31, 2020 Difference Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Select an opening responsibility report item Contribution MarginControllable Fixed CostsControllable MarginFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs $Enter a dollar amount $Enter a dollar amount $Enter the difference Select an option…

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