Need help with this question X Company has two production departments, 1 and 2. Listed below arebudgeted information for the two departments, and actual informationfor one of its products, Product X:All Products Product XDepartment 1Overhead$4,500,000Direct labor$600,000$10,800Direct labor hours 40,000720Machine hours100,0001,020Units produced59,000630Department 2Overhead$2,200,000Direct labor$600,000$3,840Direct labor hours 40,000256Machine hours130,000850Units produced39,000630Using a plant-wide allocation system with direct labor hours as the costdriver, what was the allocation to Product X?

Step 1: Compute the overhead rate under the plant-wide allocation system by dividing the total…

Answered: X Company has two production…

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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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Materials Personnel Manufacturing Packaging Employees Square Feet Asset Values $ 7,900 4,740 45,820 20,540 $ 79,000 38 19 76 57 64,750 9,250 92,500 18,500 Total 190 185,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Cost Allocation Base $ 84,400 Number of employees 69,000 Square feet occupied 32,000 Asset values $ 185,400 Insurance Total Allocate each of the three indirect expenses to the four departments. Supervision Cost to be Allocated Allocation Base Percent of Allocation Base Allocated Cost expenses Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Cost to be Allocated Utilities Allocation Base Percent of Allocation Base Allocated Cost Department Numerator Denominator % of Total…
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Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Square Feet Asset Values Employees Materials 40 60,000 $ 9,750 Personnel 8 7,500 1,300 Manufacturing Packaging 64 67,500 33,800 48 15,000 20,150 Total 160 150,000 $ 65,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Total Cost $ 83,000 Number of employees Allocation Base 55,000 Square feet occupied 25,000 Asset values $ 163,000 Allocate each of the three indirect expenses to the four departments.
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $390,600 are allocated on the basis of machine hours. The Accounting Department's costs of $110,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $340,000 and $540,000, respectively. Maintenance Accounting A B Machine hours 875 40 2,550 240 Number of employees 2 2 8 4 What is the cost of the Accounting Department's cost allocated to Department A (rounded to the nearest whole dollar) using the step method and assuming the Maintenance Department's costs are allocated first? Multiple Choice $77,027. $73,600. $68,482. $77,281.
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Godo
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Can you please give me answer this accounting question?
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $489,600 are allocated on the basis of machine hours. The Accounting Department's costs of $122,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $210,000 and $410,000, respectively. Maintenance Accounting A B Machine hours 895 80 2,400 320 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method? Note: Do not round intermediate calculations.
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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…

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