The centralized employee Travel Department of Wilson Company has expenses of $150,000. The department has serviced a total of 2,500 travel reservations for the period. The Midwest Division has made 1,000 reservations during the period, and the Southeast Division has made 1,500 reservations. How much should each division be charged for travel services?
Q: Corporate headquarters building lease Cosmetics Department sales commissions-Northridge Store…
A: Indirect cost:The cost that is not directly related to the production/manufacturing of the product…
Q: 5. The purchasing department of Bradley Co performs the purchasing function for the entire business.…
A: Allocation rate :— It is the rate used to allocate costs to cost object. It is calculated by…
Q: Bed & Bath, a retailing company, has two departments-Hardware and Linens. The company's most recent…
A: A contribution margin profits announcement subtracts all variable fees from income to calculate the…
Q: If a store uses a 35-hour workweek, determine the sales per fulltime employee equivalent based on…
A: Here in this question, we are required to calculate the sales per full time employee equivalent. We…
Q: Adventures Company provides event management services. The company has three employees, each…
A: Contribution Margin -The indicator that helps us determine how much of a company's net sales goes…
Q: Laila rents 110,000 square feet of store space for $358,000 per year. The amount of square footage…
A: In the real estate industry, a common way to measure a property's value for money is the price per…
Q: Service Department Charges The centralized employee Travel Department of Vital Company has expenses…
A: First compute the allocation rate as shown below: Allocation rate = Total expense/Total travel…
Q: Elitz and Van Aken, CPAs, offer three types of services to clients: auditing, tax, and small…
A: BUDGETING A Budget is an estimation of revenue & Expenses over a Specific Period of Time for…
Q: n divisional income statements prepared for Demopolis Company, the Payroll Department costs are…
A: Total Weekly payroll (residential)=Number of weeks×Weekly payroll=125×52=6500
Q: Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling…
A: The operating profit can be defined as that amount which remains with the business entity after…
Q: The purchasing department of Lorenzo Corporation operates as a service department. The number of…
A: The allocation of the cost of the purchasing department is represented as below: Hence, the…
Q: In divisional income statements prepared for Demopolis Company, the Payroll Department costs are…
A: Under the direct method, service department costs are directly attributed to the production…
Q: In divisional income statements prepared for Demopolis Company, the Payroll Department costs are…
A: Generally, a small-scale business has only one department, But when the business runs on a large…
Q: Support Department Allocations The centralized computer technology department of Hardy Company has…
A: Given that, centralized computer technology of Hardy company Total expenses : $ 242,000 The…
Q: ndi Services Corporation, headquartered in Bengaluru, India, provides specialized information…
A: Segment Reporting -Segment reporting, which is dependent on certain regulatory requirements, is the…
Q: The centralized travel department of Bour Company has costs of $40,560. The department has serviced…
A: Travel service cost will be charged to both the divisions proportionally. Total cost will be divided…
Q: We are preparing a Departmental Income Statement. We must allocate indirect expenses between Sales…
A: Total square feet of the departments is = 28000 Here given indirect expense are allocated on…
Q: The centralized computer technology department of Hardy Company has expenses of $61,600. The…
A: Note: Computer Technology Department expenses to be apportioned to Retail Division and Commercial…
Q: In divisional income statements prepared for Lemons Company, the Payroll Department costs are…
A: A purchase requisition is a document which an employee fills out to request for the particular items…
Q: cory for future sale. Financing Division takes loan applications, packages loans into pools, and…
A: The operating profit can be defined as that amount which remains with the business entity after…
Q: Caldwell Supply, a wholesaler, has determined that its operations have three primary activities:…
A: Target cost is the cost the company can incur for the respective expenses to earn the target…
Q: Required: a. Compute the partial productivity measures for representatives for the four locations.…
A: Partial productivity is a measure that is related to output with a single input, for example, it…
Q: Sheffield's Medical operates three support departments and two operating units, Surgery and ER. The…
A: In the reciprocal method of calculation of allocation of costs, there are three methods…
Q: Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling…
A: The operating profit can be defined as that amount which is remained with the business entity after…
Q: The following data were summarized from the accounting records for Jersey Coast Construction Company…
A: Income statement: The financial statement which reports revenues and expenses from business…
Q: Exceptional Events provides event management services. The company has three employees, each…
A: ANSWER The correct answer is option B Operating income is = $ 2850 Explanation:Step 1: CALCULATION…
Q: Advertising department expenses of $57,200 and purchasing department expenses of $45,800 of Cozy…
A: Advertising department expenses of $57,200 will be allocated in the ratio of Sales. Purchasing…
Q: ASA Tours operates a network of offices around the globe specializing in local tours given by local…
A: Variable costs are costs which changes along with change in activity level. Fixed costs are costs…
Q: Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three…
A: Reference:Bonner, B. (2023, January 1). 10.4 The reciprocal method. Pressbooks.…
Q: Media Marketing Specialists operates in three geographic segments: New England, Southeast, and…
A: All the revenues and expenses will be recorded in the financial statements of the company. The…
Q: labor distribution based on equal distribution among the departments.
A: Computation of labor distribution among the following departments is enumerated below :
Q: Service Department Charges In divisional income statements prepared for LeFevre Company, the…
A: Residential Commercial Government Contract Total No. of payroll checks:…
Q: he centralized employee travel department of Bourgeois Company has costs of $405,600. The department…
A: Travel reservations=South+West=2260+1640=3900
Q: The accounts department investigates all applications from new customers for cre sales. It has…
A: ABC costing means Activity based costing.It is used to allocation of manufacturing overhead to…
Q: Burdeno Appliances has two divisions, Sales and Financing. Sales is responsible for selling…
A: Operating profit is the difference between revenue and costs of the business. Transfer price is the…
Q: Grael Technology has two divisions, Consumer and Commercial, and two corporate service departments,…
A: The financial performance of an operating unit inside a bigger organization is summarised in a…
Q: Merton Electronics operates two retail outlets in Port Wren, one downtown and the other in…
A: Lets understand the basics.Cost of corporate activities needs to allocate between operating…
Q: Rundle Transport Company divides its operations into four divisions. A recent income statement for…
A: Requirements:-1 Computation of how much would companywide income increase or decrease if West…
Q: Fey Company's organization chart includes the president; the vice president of production; three…
A: Total manufacturing cost is the total cost incurred in the manufacturing of product during the…
Q: Lucia Company has two service departments: Office and Purchasing. Total expenses for the Office is…
A: Joint costs means the costs incurred in producing multiple products simultaneously from the same raw…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Activity Purchasing Warehousing Distributing Cost Driver Number of purchase orders Number of moves Number of shipments. Quantity of Cost Driver 1,040 8,400 540 Maximum cost Cost per Unit of Cost Driver $154 per order 34 per move 84 per shipment Caldwell buys 100,400 units at an average unit cost of $14 and sells them at an average unit price of $24. The firm also has fixed operating costs of $250,400 for the year. Caldwell's customers are demanding a 14% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 8% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 720 and can decrease the cost of each shipment by…Service Department Charges In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $75,400 and the Purchasing Department had expenses of $42,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial Government Contract Sales $1,000,000 $1,600,000 $3,200,000 Number of employees: Weekly payroll (52 weeks per year) 300 150 200 Monthly payroll 75 160 90 Number of purchase requisitions per year 4,000 3,500 3,000 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Residential Commercial…Cola Food Services Company operates and services soft drinks vending machines located in restaurants, gas stations, factories, etc., in four Southern states. The machines are rented from the manufacturer. In addition Cola must rent space occupied by its machines. The following expense and revenue relationships pertain to a contemplated expansion program of 20 machines. Fixed monthly expenses follow: Machine rental: 20 machines @$43.50 $870 Space rental: 20 locations @$28.80 $576 Part-time wages to service the additional 20 machines $1,454 Other fixed costs $100 Total monthly fixed costs $3000 Other data follow: Per unit per $100 of sales Selling price…
- RST Airlines operates call centers for customer service in four locations: Minneapolis, Phoenix, Boise, and Singapore. Although all four call centers can handle any inquiries, calls from elite customers are generally routed to the Boise center, and international calls as well as domestic calls between midnight and 6 a.m. (Central U.S Time) are routed to Singapore. The following information provides the call center representative-hours worked and the number of calls handled for the most recent period: Representative-hours Calls handled Location Minneapolis 8,430 60,696 Minneapolis Phoenix Boise Singapore Phoenix 10, 200 61,710 Boise 7,220 30,324 Required: a. Compute the partial productivity measures for representatives for the four locations. Partial Labor Productivity Singapore 14,300 73,216Draper Bank uses activity-based costing to determine the cost of servicing customers. Thereare three activity pools: teller transaction processing, check processing, and ATM transactionprocessing. The activity rates associated with each activity pool are $3.50 per teller transaction,$0.12 per canceled check, and $0.10 per ATM transaction. Corner Cleaners Inc. (a customer ofDraper Bank) had 12 teller transactions, 100 canceled checks, and 20 ATM transactions duringthe month. Determine the total monthly activity-based cost for Corner Cleaners Inc. during themonth.Cheyenne's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $271000, $158300, and $68800, respectively. Information on the hours used are as follows: Acct Admin HR Surgery ER Hours in Acct 20 48 360 220 Hours in Admin 16 8 120 80 Hours in HR 8 4 65 130 What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.) O $280035. O $282405. O $256681. O $0.
- Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Cost Driver Number of purchase orders Number of moves Distributing Number of shipments Activity Purchasing Warehousing Quantity of Cost Driver 1,200 8,900 700 Cost per Unit of Cost Driver $170 per order 39 per move 100 per shipment Caldwell buys 102,000 units at an average unit cost of $19 and sells them at an average unit price of $29. The firm also has fixed operating costs of $252,000 for the year. Maximum cost Caldwell's customers are demanding a 19% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 13% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 880 and can decrease the cost of each shipment by…Macee Store has three operating departments, and it conducts advertising that benefits all departments. Advertising costs are $110,000. Sales for its operating departments follow. Department Sales 1 $ 247,500 2 455,400 3 287, 100 How much advertising cost is allocated to each operating department if the allocation is based on departmental sales? Note: Do not round your intermediate calculations.The following cost data pertain to the operations of Quinonez Department Stores, Incorporated, for the month of September. Corporate headquarters building lease $ 78,000 Cosmetics Department sales commissions-Northridge Store $ 5,270 Corporate legal office salaries $ 66,500 Store manager's salary-Northridge Store $ 12,200 Heating-Northridge Store $ 20,400 Cosmetics Department cost of sales-Northridge Store $ 39,100 Central warehouse lease cost $ 9,800 Store security-Northridge Store $ 16,200 Cosmetics Department manager's salary-Northridge Store $ 4,310 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores. What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?
- In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $90,784, and the Purchasing Department had expenses of $31,270 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial GovernmentContract Sales $ 654,000 $ 866,000 $ 1,989,000 Number of employees: Weekly payroll (52 weeks per year) 250 80 85 Monthly payroll 28 39 26 Number of purchase requisitions per year 2,200 1,600 1,500 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Residential Commercial Government Contract…In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $51,792, and the Purchasing Department had expenses of $22,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial GovernmentContract Sales $ 460,000 $ 609,000 $ 1,399,000 Number of employees: Weekly payroll (52 weeks per year) 170 65 70 Monthly payroll 36 47 34 Number of purchase requisitions per year 2,100 1,500 1,400 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Residential Commercial Government Contract…Service Department Charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $77,376, and the Purchasing Department had expenses of $39,530 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: Residential Commercial GovernmentContract Sales $ 826,000 $ 1,095,000 $ 2,514,000 Number of employees: Weekly payroll (52 weeks per year) 220 60 65 Monthly payroll 36 47 34 Number of purchase requisitions per year 2,800 2,000 1,900 a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. Residential…