MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL
17th Edition
ISBN: 9781265574826
Author: Garrison
Publisher: MCG
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Question
Chapter 11, Problem 18P
1.
To determine
Introduction:
Service department costs are charged to the operating department to encourage the operating department to make wise and efficient use of the resources of the service department. If these services are provided free of cost, the operating segments would be more inclined toward wasting these resources.
The amount of maintenance cost that should be charged to both the departments.
2.
To determine
Introduction:
Service department costs are charged to the operating department to encourage the operating department to make wise and efficient use of the resources of the service department. If these services are provided free of cost, the operating segments would be more inclined toward wasting these resources.
The value of the actual maintenance department costs to be treated as spending variance (if any).
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Required information
Exercise 11-27 & 11-28 (Algo) (LO 11-2)
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[The following information applies to the questions displayed below.]
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow:
Proportion of Services Used by
Department
Direct Costs
Maintenance
Cafeteria
Machining
Assembly
Machining
$
94,000
Assembly
66,400
Maintenance
41,200
—
0.2
0.6
0.2
Cafeteria
33,000
0.8
—
0.1
0.1
Exercise 11-28 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-2)
Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in…
Chapter 11 Solutions
MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL
Ch. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Prob. 3QCh. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - Prob. 6QCh. 11 - Prob. 7QCh. 11 - Prob. 8QCh. 11 - Prob. 9QCh. 11 - Prob. 10Q
Ch. 11 - Prob. 1AECh. 11 - Prob. 2AECh. 11 - Prob. 1F15Ch. 11 - Prob. 2F15Ch. 11 - Prob. 3F15Ch. 11 - Prob. 4F15Ch. 11 - Prob. 5F15Ch. 11 - Prob. 6F15Ch. 11 - Prob. 7F15Ch. 11 - Prob. 8F15Ch. 11 - Prob. 9F15Ch. 11 - Prob. 10F15Ch. 11 - Prob. 11F15Ch. 11 - (
$1,000,000
300,000
700,000
500.000
$
200,000
...Ch. 11 - Prob. 13F15Ch. 11 - Prob. 14F15Ch. 11 - Prob. 15F15Ch. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 -
EXERCISE 11-9 Return on Investment (ROI) and...Ch. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26C
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