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 IT tickets Employees Department direct costs 0 16 155,000 a. The order of allocation starts with IT. b. The order of allocation starts with HR. HR 1,500 0 $ 253,000 Publishing 1,500 24 $430,000 Required: Use the step method to allocate the service costs, using the following: Complete this question by entering your answers in the tabs below. Binding 4,500 40 $ 390,000

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 IT tickets Employees Department direct costs 0 16 155,000 a. The order of allocation starts with IT. b. The order of allocation starts with HR. HR 1,500 0 $ 253,000 Publishing 1,500 24 $430,000 Required: Use the step method to allocate the service costs, using the following: Complete this question by entering your answers in the tabs below. Binding 4,500 40 $ 390,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...

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T1.
i Required information Exercise 9-34 and 9-35 (Static) [The following information applies to the questions displayed below.] Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a representative quarter for the two models follow: Units produced Standard 10,000 Premium 2,500 Production runs per quarter 50 25 Direct materials cost per unit Direct labor cost per unit $ 30 50 $ 64 75 Manufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection. Data on manufacturing overhead for a representative quarter follow: Supervision Setup labor Incoming inspection Total overhead $ 206,250 240,000 172,500 $ 618,750 Exercise 9-34 (Static) Activity-Based Costing and Cost Driver Rates (LO 9-4) Required: a. Benton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter? b. The CFO and the plant controller at Benton are thinking…
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Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Per Unit $ 5.20 $ 2.70 $ 1.50 $ 4.00 $ 2.20 $ 2.00 $ 1.00 $ 0.50 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 6. If 12,500 units are produced and sold, what is the total amount of variable costs related to the units produced and sold? (Do not round intermediate calculations.) * Answer is complete but not entirely correct. Total variable cost $ 87,200
Required Informatlon [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product. Its average cost per unit for each product at this level of activity are given below Alpha Beta $ 24 Direct materials 3. 24 Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 42 34 27 Total cost per unit $173 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. 3. Assume that Cane expects to produce and sell 99,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy…
! Required information Exercise 9-34 and 9-35 (Static) [The following information applies to the questions displayed below.] Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a representative quarter for the two models follow: Units produced Standard 10,000 Premium 2,500 Production runs per quarter 50 25 Direct materials cost per unit Direct labor cost per unit $ 30 50 $ 64 75 Manufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection. Data on manufacturing overhead for a representative quarter follow: Supervision Setup labor Incoming inspection Total overhead $ 206,250 240,000 172,500 $ 618,750 Exercise 9-35 (Static) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor costs as the allocation basis for overhead). b. Compute the unit costs for…
Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 9,500 units to 14,500 units. When it produces and sells 12,000 units, its unit costs are as follows: Amount Per Unit Direct materials $5.00 $2.50 $1.40 $3.00 $2.00 $2.20 $1.20 Direct labour Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $0.45 4. If 12,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.) Variable cost per unit sold
send to expert Required information Cost Classifications (Algo) Skip to question [The following information applies to the questions displayed below.] Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.60 Direct labor $ 4.60 Variable manufacturing overhead $ 2.10 Fixed manufacturing overhead $ 5.60 Fixed selling expense $ 4.10 Fixed administrative expense $ 3.10 Sales commissions $ 1.60 Variable administrative expense $ 1.10 Exercise 1 - 10 (Algo) Differential Costs and Sunk Costs [LO1 - 5] Required: What is the incremental manufacturing cost incurred if the company increases production from 17,000 to 17,001 units? What is the incremental cost incurred if the company increases production and sales from 17,000 to 17,001 units? Assume Kubin Company produced 17,000 units and expects to sell 16,740 of them. If a new customer unexpectedly…
ces Required information [The following information applies to the questions displayed below.] Ac Graw Hill 1 Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Q A Direct materials Direct labor N Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 4. If 12,500 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.) Variable cost per unit sold @ 2 W S #3 X of E D $ 4 * 00 8 J N E 2023-01...0.40 PM 2023-01...2.52 PM 2022-12 ( ( 1 9 C K M 0 O L H I' P comm
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Required information [The following information applies to the questions displayed below.] Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow: Direct Labor-Hours per unit 0.40 0.80 Annual Production 18,000 units 76,000 units Rims Posts Additional information about the company follows: a. Rims require $10 in direct materials per unit, and Posts require $7. b. The direct labor wage rate is $17 per hour. c. Rims are more complex to manufacture than Posts and they require special equipment. d. The ABC system has the following activity cost pools: Estimated Activity Activity Cost Pool Mach ine setups Special process ing General factory Activity Measure Number of setups Mach ine-hours Direct labor-hours Estimated Overhead Cost $ 25,080 $ 122,360 $ 702,000 Rims 80 2,000 7,200 Total 300 2,000 68,000 Posts 220 60,800 2. Determine the unit product cost of each product according to the ABC system. (Do not round intermediate…
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