What was the allocation to product? Accounting Two departments, and actual information for one of its products, Product 1:Department X:All Products Product 1Overhead$6,800,000Direct labor$680,000$13,583Direct labor hours 40,000799Machine hours110,0001,100Units produced60,000860Department Y:Overhead$2,100,000Direct labor$850,000$4,879Direct labor hours 50,000287Machine hours120,000890Units produced35,000860Using a plantwide allocation system with machine hours as the cost driver, whatIwas the allocation to Product 1?

Step 1: Define Plantwide AllocationIn plantwide allocation, the company uses one allocation base in…

Answered: Two departments, and actual information…

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 1CMA

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Allocate the service cost using the Direct method.
Service Department Cost Allocation Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 1 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $120,000 $144,000 $180,000 $196,000 Square feet of factory floor space 80,000 160,000 Number of factory workers 60 20 Planned direct labor hours for the year 40,000 60,000 Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do not round bases when calculating reallocations of service departments. Production 1 2 Identifiable and allocated overhead Reallocation of service departments: Dept. 1 Factory floor space Dept. 2 Number of factory workers Total manufacturing overhead What is the apparent overhead rate for each…
Calculating Departmental Overhead Rates Using Post-Allocation Costs Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments HumanResources GeneralFactory Fabricating Assembly Direct costs $160,000 $320,000 $114,500 $96,000 Normal activity: Number of employees ― 75 35 65 Square footage 1,600 ― 3,750 11,250 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Valron Company uses the direct method of support department cost allocation. Solve for the allocated costs to Fabricating and Assembly using the direct method of support department cost allocation. The Fabricating Department overhead rate is based on normal activity of 85,000 machine hours. The Assembly Department…
Support department allocations The centralized computer technology department of Hardy Company has expenses of 320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. How much should each division be allocated for computer technology department services?
Travelcraft Company manufactures a complete line of fiberglass suitcases and attaché cases. The firm has three manufacturing departments: Molding, Component, and Assembly. There are also two service departments: Power and Maintenance. The sides of the cases are manufactured in the Molding Department. The frames, hinges, and locks are manufactured in the Component Department. The cases are completed in the Assembly Department. Varying amounts of materials, time, and effort are required for each of the cases. The Power Department and Maintenance Department provide services to the three manufacturing departments. Travelcraft has always used a plantwide overhead rate. Direct-labor hours are used to assign overhead to products. The predetermined overhead rate is calculated by dividing the company's total estimated overhead by the total estimated direct-labor hours to be worked in the three manufacturing departments. Karen Mason, director of cost management, has recommended that Travelcraft…
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Technology and Personnel, and two operating departments, Prepress and Printing. Service Department Operating Department Information Technology $ 27,412 Printing $ 530,110 Personnel Prepress Departmental costs $ 27,008 $ 376,940 Computer workstations 28 19 51 38 Employees 27 14 98 30 Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total Prepress Department cost after service department allocations is closest to: Multiple Choice $406,961 $413,326 $402,881 $410,563
A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Production Dept. Service Cost Center Supervision Maintenance Occupancy Dept.1 Supervision Equipment maint. Building occunpany 10% Direct costs in the various departments are as follows: Dept. 2 45% 10% 5% 40% 45% 35% 0. 55% 10% 0 45% Department Supervision Equipment maintenance Building occupancy Production Dept. No. I Production Dept. No. 2 Direct Cost P 35,000 30,000 90,000 350,000 450,000 Label SI S2 S3 P1 P2
nkt.1
Required information The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Costs Number of employees Square feet of space occupied Hours of press time Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance $ 144,200 $ 108,150 $ 49,440 140 20,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 60 15,000 Administration $ The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Service Departments Janitorial $ 144,200 $ 108,150 $ 35 10,000 Required: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line…
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