Cost allocation: Cost allocation is a system to distribute the costs to the activities or departments. The allocation is done on the basis of some allocation base. Departmental Contribution to overhead: Departmental Contribution to overheads is the balance of sales after subtracting all the direct expenses. In other words, it is the amount available to bear overheads or indirect costs. The formula to calculate the Departmental Contribution to overheads is as follows: D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s = S a l e s − C o s t o f g o o d s s o l d – T o t a l D i r e c t e x p e n s e s Departmental Net income: Departmental Net income is the balance of Departmental Contribution to overheads after subtracting all the indirect expenses or overheads. The formula to calculate Departmental Net income is as follows: D e p a r t m e n t a l N e t i n c o m e = D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s – T o t a l I n d i r e c t E x p e n s e s o r o v e r e h a d s Requirement-1: To calculate: The Contribution to overhead and net income for each department

Question

Want to see the full answer?

Answer 1

Question

Chapter 24, Problem 4BPSB

To determine

Introduction:

Cost allocation: Cost allocation is a system to distribute the costs to the activities or departments. The allocation is done on the basis of some allocation base.

Departmental Contribution to overhead: Departmental Contribution to overheads is the balance of sales after subtracting all the direct expenses. In other words, it is the amount available to bear overheads or indirect costs. The formula to calculate the Departmental Contribution to overheads is as follows:

$D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s = S a l e s - C o s t o f g o o d s s o l d - T o t a l D i r e c t e x p e n s e s$

Departmental Net income: Departmental Net income is the balance of Departmental Contribution to overheads after subtracting all the indirect expenses or overheads. The formula to calculate Departmental Net income is as follows:

$\begin{array}{l} D e p a r t m e n t a l N e t i n c o m e = \\ D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s - T o t a l I n d i r e c t E x p e n s e s o r o v e r e h a d s \end{array}$

Requirement-1:

To calculate: The Contribution to overhead and net income for each department

To determine

Requirement-2:

To determine: if the Guitar department should be eliminated

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

I am searching for the correct answer to this General accounting problem with proper accounting rules.

Can you help me solve this general accounting problem with the correct methodology?

Solve this accounting questions.

Answer 2

Question

Chapter 24, Problem 4BPSB

To determine

Introduction:

Cost allocation: Cost allocation is a system to distribute the costs to the activities or departments. The allocation is done on the basis of some allocation base.

Departmental Contribution to overhead: Departmental Contribution to overheads is the balance of sales after subtracting all the direct expenses. In other words, it is the amount available to bear overheads or indirect costs. The formula to calculate the Departmental Contribution to overheads is as follows:

$D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s = S a l e s - C o s t o f g o o d s s o l d - T o t a l D i r e c t e x p e n s e s$

Departmental Net income: Departmental Net income is the balance of Departmental Contribution to overheads after subtracting all the indirect expenses or overheads. The formula to calculate Departmental Net income is as follows:

$\begin{array}{l} D e p a r t m e n t a l N e t i n c o m e = \\ D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s - T o t a l I n d i r e c t E x p e n s e s o r o v e r e h a d s \end{array}$

Requirement-1:

To calculate: The Contribution to overhead and net income for each department

To determine

Requirement-2:

To determine: if the Guitar department should be eliminated

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 24, Problem 4BPSB

To determine

Introduction:

Cost allocation: Cost allocation is a system to distribute the costs to the activities or departments. The allocation is done on the basis of some allocation base.

Departmental Contribution to overhead: Departmental Contribution to overheads is the balance of sales after subtracting all the direct expenses. In other words, it is the amount available to bear overheads or indirect costs. The formula to calculate the Departmental Contribution to overheads is as follows:

$D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s = S a l e s - C o s t o f g o o d s s o l d - T o t a l D i r e c t e x p e n s e s$

Departmental Net income: Departmental Net income is the balance of Departmental Contribution to overheads after subtracting all the indirect expenses or overheads. The formula to calculate Departmental Net income is as follows:

$\begin{array}{l} D e p a r t m e n t a l N e t i n c o m e = \\ D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s - T o t a l I n d i r e c t E x p e n s e s o r o v e r e h a d s \end{array}$

Requirement-1:

To calculate: The Contribution to overhead and net income for each department

To determine

Requirement-2:

To determine: if the Guitar department should be eliminated

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 24, Problem 4BPSB

To determine

Introduction:

Cost allocation: Cost allocation is a system to distribute the costs to the activities or departments. The allocation is done on the basis of some allocation base.

Departmental Contribution to overhead: Departmental Contribution to overheads is the balance of sales after subtracting all the direct expenses. In other words, it is the amount available to bear overheads or indirect costs. The formula to calculate the Departmental Contribution to overheads is as follows:

$D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s = S a l e s - C o s t o f g o o d s s o l d - T o t a l D i r e c t e x p e n s e s$

Departmental Net income: Departmental Net income is the balance of Departmental Contribution to overheads after subtracting all the indirect expenses or overheads. The formula to calculate Departmental Net income is as follows:

$\begin{array}{l} D e p a r t m e n t a l N e t i n c o m e = \\ D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s - T o t a l I n d i r e c t E x p e n s e s o r o v e r e h a d s \end{array}$

Requirement-1:

To calculate: The Contribution to overhead and net income for each department

To determine

Requirement-2:

To determine: if the Guitar department should be eliminated

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 24, Problem 4BPSB

To determine

Introduction:

Cost allocation: Cost allocation is a system to distribute the costs to the activities or departments. The allocation is done on the basis of some allocation base.

Departmental Contribution to overhead: Departmental Contribution to overheads is the balance of sales after subtracting all the direct expenses. In other words, it is the amount available to bear overheads or indirect costs. The formula to calculate the Departmental Contribution to overheads is as follows:

$D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s = S a l e s - C o s t o f g o o d s s o l d - T o t a l D i r e c t e x p e n s e s$

Departmental Net income: Departmental Net income is the balance of Departmental Contribution to overheads after subtracting all the indirect expenses or overheads. The formula to calculate Departmental Net income is as follows:

$\begin{array}{l} D e p a r t m e n t a l N e t i n c o m e = \\ D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s - T o t a l I n d i r e c t E x p e n s e s o r o v e r e h a d s \end{array}$

Requirement-1:

To calculate: The Contribution to overhead and net income for each department

To determine

Requirement-2:

To determine: if the Guitar department should be eliminated

Answer 6

Chapter 24, Problem 4BPSB

To determine

Introduction:

Cost allocation: Cost allocation is a system to distribute the costs to the activities or departments. The allocation is done on the basis of some allocation base.

Departmental Contribution to overhead: Departmental Contribution to overheads is the balance of sales after subtracting all the direct expenses. In other words, it is the amount available to bear overheads or indirect costs. The formula to calculate the Departmental Contribution to overheads is as follows:

$D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s = S a l e s - C o s t o f g o o d s s o l d - T o t a l D i r e c t e x p e n s e s$

Departmental Net income: Departmental Net income is the balance of Departmental Contribution to overheads after subtracting all the indirect expenses or overheads. The formula to calculate Departmental Net income is as follows:

$\begin{array}{l} D e p a r t m e n t a l N e t i n c o m e = \\ D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s - T o t a l I n d i r e c t E x p e n s e s o r o v e r e h a d s \end{array}$

Requirement-1:

To calculate: The Contribution to overhead and net income for each department

Answer 7

Chapter 24, Problem 4BPSB

To determine

Introduction:

Cost allocation: Cost allocation is a system to distribute the costs to the activities or departments. The allocation is done on the basis of some allocation base.

Departmental Contribution to overhead: Departmental Contribution to overheads is the balance of sales after subtracting all the direct expenses. In other words, it is the amount available to bear overheads or indirect costs. The formula to calculate the Departmental Contribution to overheads is as follows:

$D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s = S a l e s - C o s t o f g o o d s s o l d - T o t a l D i r e c t e x p e n s e s$

Departmental Net income: Departmental Net income is the balance of Departmental Contribution to overheads after subtracting all the indirect expenses or overheads. The formula to calculate Departmental Net income is as follows:

$\begin{array}{l} D e p a r t m e n t a l N e t i n c o m e = \\ D e p a r t m e n t a l C o n t r i b u t i o n t o o v e r h e a d s - T o t a l I n d i r e c t E x p e n s e s o r o v e r e h a d s \end{array}$

Requirement-1:

To calculate: The Contribution to overhead and net income for each department

Answer 8

To determine

Requirement-2:

To determine: if the Guitar department should be eliminated

Answer 9

To determine

Requirement-2:

To determine: if the Guitar department should be eliminated

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 24 - Prob. 1DQ Ch. 24 - What is the difference between operating...Ch. 24 - What are controllable costs?Ch. 24 - Prob. 4DQ Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - Prob. 7DQ Ch. 24 - What is the difference between direct and indirect...Ch. 24 - Prob. 9DQ Ch. 24 - Prob. 10DQ

Videos

Requirement-2:

To determine: if the Guitar department should be eliminated

Want to see the full answer?

Chapter 24 Solutions

Videos

Requirement-2: To determine: if the Guitar department should be eliminated

Want to see the full answer?

Chapter 24 Solutions

Requirement-2:

To determine: if the Guitar department should be eliminated