Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. Indirect Expense Supervision Utilities Insurance Total Cost Allocation Base $ 83,100 Number of employees 56,000 square feet occupied 25,500 Value of assets in use $164,600 Departmental data for the company's recent reporting period follow. Square Feet 32,000 16,000 88,000 24,000 160,000 Department Materials Personnel Manufacturing Packaging Total Employees 34 17 68 51 170 Asset Values $13,200 1,980 34,980 15,840 $66,000 1. Use this information to allocate each of the three indirect expenses across the four departments. 2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments. your answers in the tabs below.

Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. Indirect Expense Supervision Utilities Insurance Total Cost Allocation Base $ 83,100 Number of employees 56,000 square feet occupied 25,500 Value of assets in use $164,600 Departmental data for the company's recent reporting period follow. Square Feet 32,000 16,000 88,000 24,000 160,000 Department Materials Personnel Manufacturing Packaging Total Employees 34 17 68 51 170 Asset Values $13,200 1,980 34,980 15,840 $66,000 1. Use this information to allocate each of the three indirect expenses across the four departments. 2. Prepare a summary table that reports the indirect expenses assigned to each of the four departments. your answers in the tabs below.

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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Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departmen organized according to the special industry each department serves, are health care, retail, and legal services. The billing depart supports only the three operating departments, but the human resources department supports all operating departments and th billing department. Other relevant information follows. Number of employees Annual cost* Annual revenue Req A1 Billing Human Resources 10 $720,000 $1,428,000 $6,000,000 Department Req A2 Health Care Retail Legal Services Total Complete this question by entering your answers in the tabs below. Req B1 Human Resources *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company the number of employees as the base for allocating human resources department costs and department…
aducation.com/ext/map/index html?_con%3con&external_browser%-D0&launchUrl=https%253A%252F%252Fbbhosted.cuny.edu%252Fwebapps%252Fportal%252Ffra oks Login Module 5-Chap 18 H Office templates & t.. EChapter 4 Saved Help Save & Exit Major Co. reported 2021 income of $319,000 from continuing operations before income taxes and a before-tax loss on discontinued operations of $74,000. All income is subject to a 25% tax rate. In the income statement for the year ended December 31, 2021, Major Co. would show the following line-item amounts for income tax expense and net income: Multiple Choice $61,250 and $393,000 respectively. $79.750 and $183,750 respectively. $61,250 and $239,250 respectively.
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Novak's Medical operates three support departments and two operating units. Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $273400, $156400, and $62000, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct O $16416. O $0. O $17186. O $17897. 16 8 Admin 20 4 HR 48 8 Surgery ER 360 120 65 220 80 130 What amount of costs would be allocated from the administrative department to the other support departments (Acct and HR) using the reciprocal method to allocate costs? (Do not round the intermediate calculations.)
Information from the records of the Conundrum Company for September 2018 was as follows: Sales $307,500 Selling and administrative expenses 52,500 Direct materials used 66,000 Direct labor 75,000 Variable factory overhead 50,000 Factory overhead 51,250 Inventories Sept. 1, 2018 Sept 30, 2018 Direct materials $ 8,000 $10,500 Work in process 18,750 21,000 Finished goods 17,250 14,250 Conundrum Corporation produced 20,000 units.What are the total variable costs per unit? a.$2.175 b.$6.25 c.$7.05 d.$9.55
Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance Utilities Overhead costs incurred $ 108,000 $630,000 Service provided to departments Maintenance - 5% Utilities 10% - Producing-A 20 40 Producing-B 70 55 Totals 100% 100% Required: What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediate calculations. Round final answers to the nearest dollar.)
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Prepare summary journal entries to record the following transactions for a company in its first month of operations. Raw materials purchased on account, $90,000. Direct materials used in production, $36,500. Indirect materials used in production, $19,200. Paid cash for factory payroll, $50,000. Of this total, $38,000 is for direct labor and $12,000 is for indirect labor. Paid cash for other actual overhead costs, $11,475. Applied overhead at the rate of 125% of direct labor cost. Transferred cost of jobs completed to finished goods, $56,800. Sold jobs on account for $82,000 g(2). The jobs had a cost of $56,800 g(1).