Cost Accounting, Student Value Edition (15th Edition)
15th Edition
ISBN: 9780133428858
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Question
Chapter 14, Problem 14.21E
1.
To determine
The division margin in terms of percentage before allocation of fixed
Given
Hotel revenue as $16,425,000
Restaurant revenue as $5,256,000
Casino Revenues $12,340,000
Direct costs of hotel as $9,819,260
Direct costs of restaurant $3,749,172
Direct costs of casino as 4,248,768
Segment margin of hotel as $ 6,605,740
Segment margin of restaurant as $1,506,828
Segment margin of casino as $ 8,091,232
Floor space of hotel as 80,000 sqft
Floor space of restaurant 16,000 sqft
Floor space of casino as 64,000 sqft
No. of employees in hotel as 200
No. of employees in restaurant as 50
No. of employees in casino as 250
Total fixed overhead costs for 2013 were $14,550,000
2.
To determine
The allocation of indirect costs to divisions using three different bases suggested.
3.
To determine
The way to decide how to allocate the indirect costs to the division
4.
To determine
Whether any of the divisions should be closed on the basis of the analysis
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Students have asked these similar questions
Cline Manufacturing Company uses a job order system and maintains perpetual inventory records.
Indicate the the appropriate account(s) to be debited and credited for the transactions listed below. (On multiple entries enter
answers in alphabetical order.)
Transactions
1.
Raw materials were purchased on account.
2.
Issued a check to Dixon Machine Shop for repair
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3.
Direct materials were requisitioned for Job 280.
4.
Factory labor was paid as incurred.
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Recognized direct labor and indirect labor used.
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The production department requisitioned
7.
indirect materials for use in the factory.
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8.
Goods that were completed were transferred to
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9.
Goods costing $80,000 were sold for $105,000
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Paid for raw materials purchased previously on
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Account(s)
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Based on the screenshot, what is the maximim flow?
Star Company incurred and paid the following costs for research and development activities:
Material used from inventory
$ 60,000
Wages and salaries
85,000
Allocation of general and administrative costs
25,000
Depreciation on building housing multiple research and development activities
30,000
Machine purchased for research and development project that has no future alternative uses
35,000
Total
$235,000
If Star includes all these costs in research and development expense, including the entire cost of the machine with no alternative future uses, which of the following would be included in the journal entry?
Chapter 14 Solutions
Cost Accounting, Student Value Edition (15th Edition)
Ch. 14 - Prob. 14.1QCh. 14 - Why is customer-profitability analysis an...Ch. 14 - Prob. 14.3QCh. 14 - A customer-profitability profile highlights those...Ch. 14 - Give examples of three different levels of costs...Ch. 14 - What information does the whale curve provide?Ch. 14 - A company should not allocate all of its corporate...Ch. 14 - What criteria might managers use to guide...Ch. 14 - Once a company allocates corporate costs to...Ch. 14 - A company should not allocate costs that are fixed...
Ch. 14 - How should a company decide on the number of cost...Ch. 14 - Show how managers can gain insight into the causes...Ch. 14 - How can the concept of a composite unit be used to...Ch. 14 - Explain why a favorable sales-quantity variance...Ch. 14 - How can the sales-quantity variance be decomposed...Ch. 14 - Prob. 14.16ECh. 14 - Prob. 14.17ECh. 14 - Prob. 14.18ECh. 14 - Prob. 14.19ECh. 14 - Prob. 14.20ECh. 14 - Prob. 14.21ECh. 14 - Prob. 14.22ECh. 14 - Prob. 14.23ECh. 14 - Prob. 14.24ECh. 14 - Prob. 14.25ECh. 14 - Prob. 14.26ECh. 14 - Prob. 14.27PCh. 14 - Prob. 14.28PCh. 14 - Prob. 14.29PCh. 14 - Prob. 14.30PCh. 14 - Prob. 14.31PCh. 14 - Prob. 14.32PCh. 14 - Prob. 14.33PCh. 14 - Prob. 14.34PCh. 14 - Prob. 14.35PCh. 14 - Prob. 14.36PCh. 14 - Prob. 14.37PCh. 14 - Prob. 14.38PCh. 14 - Customer profitability and ethics. KC Corporation...
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