The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

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Answer 1

Question

Chapter 15, Problem 15.16E

1.(a)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

1.(b)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the expected monthly usage.

2.

To determine

The budgeted amounts to be allocated to each manufacturing department and the reason for preferring the dual-rate method.

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During September, the assembly department completed 10,500 units of a product that had a standard materials cost of 3.0 square feet per unit at $2.40 per square foot. The actual materials purchased consisted of 22,000 square feet at $2.60 per square foot, for a total cost of $57,200. The actual material used during this period was 25,500 square feet. Compute the materials price variance and materials usage variance.

Answer 2

Question

Chapter 15, Problem 15.16E

1.(a)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

1.(b)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the expected monthly usage.

2.

To determine

The budgeted amounts to be allocated to each manufacturing department and the reason for preferring the dual-rate method.

Expert Solution & Answer

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Answer 3

Question

Chapter 15, Problem 15.16E

1.(a)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

1.(b)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the expected monthly usage.

2.

To determine

The budgeted amounts to be allocated to each manufacturing department and the reason for preferring the dual-rate method.

Expert Solution & Answer

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Answer 4

Question

Chapter 15, Problem 15.16E

1.(a)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

1.(b)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the expected monthly usage.

2.

To determine

The budgeted amounts to be allocated to each manufacturing department and the reason for preferring the dual-rate method.

Expert Solution & Answer

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Answer 5

Chapter 15, Problem 15.16E

1.(a)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

1.(b)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the expected monthly usage.

2.

To determine

The budgeted amounts to be allocated to each manufacturing department and the reason for preferring the dual-rate method.

Answer 6

Chapter 15, Problem 15.16E

1.(a)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

Answer 7

Chapter 15, Problem 15.16E

1.(a)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

Answer 8

1.(b)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the expected monthly usage.

Answer 9

1.(b)

To determine

The cost allocated to the manufacturing department if the rate and costs are allocated to the expected monthly usage.

Answer 10

2.

To determine

The budgeted amounts to be allocated to each manufacturing department and the reason for preferring the dual-rate method.

Answer 11

2.

To determine

The budgeted amounts to be allocated to each manufacturing department and the reason for preferring the dual-rate method.

Answer 12

Expert Solution & Answer

Answer 13

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Answer 14

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Answer 15

Ch. 15 - Prob. 15.1Q Ch. 15 - Describe how the dual-rate method is useful to...Ch. 15 - How do budgeted cost rates motivate the...Ch. 15 - Give examples of allocation bases used to allocate...Ch. 15 - Why might a manager prefer that budgeted rather...Ch. 15 - To ensure unbiased cost allocations, fixed costs...Ch. 15 - Prob. 15.7Q Ch. 15 - What is conceptually the most defensible method...Ch. 15 - Distinguish between two methods of allocating...Ch. 15 - Prob. 15.10Q

The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

The cost allocated to the manufacturing department if the rate and costs are allocated to the practical capacity.

The cost allocated to the manufacturing department if the rate and costs are allocated to the expected monthly usage.

The budgeted amounts to be allocated to each manufacturing department and the reason for preferring the dual-rate method.

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Chapter 15 Solutions