Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base. Allocation of the service department’s cost to the consuming department and the predetermined overhead rates in the operating department.

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Answer 1

Question

Chapter 5, Problem 8QS

1.

To determine

Introduction:

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

Allocation of the service department’s cost to the consuming department and the predetermined overhead rates in the operating department.

2.

To determine

Introduction:

Direct method: Under the direct method, the overhead costs incurred by the supporting department are directly allocated to the operating department.

Allocation of the service department’s cost to the consuming department using the direct method and the predetermined overhead rate.

3.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The amount of overhead cost for the job using overhead rates computed in parts 1 and 2.

3.

b.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The reason the step-down method is a better base for computing the predetermined rates than the direct method.

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Give this question financial accounting

1.3 1.2.5 za When using a computerised accounting system, the paper work will be reduced in the organisation. Calculate the omitting figures: Enter only the answer next to the question number (1.3.1-1.3.5) in the NOTE. Round off to TWO decimals. VAT report of Comfy shoes as at 30 April 2021 OUTPUT TAX INPUT TAX NETT TAX Tax Gross Tax(15%) Gross (15%) Standard 75 614,04 1.3.1 Capital 1.3.2 9 893,36 94 924,94 Tax (15%) 1.3.3 Gross 484 782,70 75 849,08 -9 893,36 -75 849,08 Bad Debts TOTAL 1.3.4 4 400,00 1 922,27 14 737,42 -1 348,36 1.3.5 (5 x 2) (10

Answer 2

Question

Chapter 5, Problem 8QS

1.

To determine

Introduction:

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

Allocation of the service department’s cost to the consuming department and the predetermined overhead rates in the operating department.

2.

To determine

Introduction:

Direct method: Under the direct method, the overhead costs incurred by the supporting department are directly allocated to the operating department.

Allocation of the service department’s cost to the consuming department using the direct method and the predetermined overhead rate.

3.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The amount of overhead cost for the job using overhead rates computed in parts 1 and 2.

3.

b.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The reason the step-down method is a better base for computing the predetermined rates than the direct method.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 8QS

1.

To determine

Introduction:

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

Allocation of the service department’s cost to the consuming department and the predetermined overhead rates in the operating department.

2.

To determine

Introduction:

Direct method: Under the direct method, the overhead costs incurred by the supporting department are directly allocated to the operating department.

Allocation of the service department’s cost to the consuming department using the direct method and the predetermined overhead rate.

3.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The amount of overhead cost for the job using overhead rates computed in parts 1 and 2.

3.

b.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The reason the step-down method is a better base for computing the predetermined rates than the direct method.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 8QS

1.

To determine

Introduction:

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

Allocation of the service department’s cost to the consuming department and the predetermined overhead rates in the operating department.

2.

To determine

Introduction:

Direct method: Under the direct method, the overhead costs incurred by the supporting department are directly allocated to the operating department.

Allocation of the service department’s cost to the consuming department using the direct method and the predetermined overhead rate.

3.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The amount of overhead cost for the job using overhead rates computed in parts 1 and 2.

3.

b.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The reason the step-down method is a better base for computing the predetermined rates than the direct method.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 8QS

1.

To determine

Introduction:

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

Allocation of the service department’s cost to the consuming department and the predetermined overhead rates in the operating department.

2.

To determine

Introduction:

Direct method: Under the direct method, the overhead costs incurred by the supporting department are directly allocated to the operating department.

Allocation of the service department’s cost to the consuming department using the direct method and the predetermined overhead rate.

3.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The amount of overhead cost for the job using overhead rates computed in parts 1 and 2.

3.

b.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The reason the step-down method is a better base for computing the predetermined rates than the direct method.

Answer 6

Chapter 5, Problem 8QS

1.

To determine

Introduction:

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

Allocation of the service department’s cost to the consuming department and the predetermined overhead rates in the operating department.

Answer 7

Chapter 5, Problem 8QS

1.

To determine

Introduction:

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

Allocation of the service department’s cost to the consuming department and the predetermined overhead rates in the operating department.

Answer 8

2.

To determine

Introduction:

Direct method: Under the direct method, the overhead costs incurred by the supporting department are directly allocated to the operating department.

Allocation of the service department’s cost to the consuming department using the direct method and the predetermined overhead rate.

Answer 9

2.

To determine

Introduction:

Direct method: Under the direct method, the overhead costs incurred by the supporting department are directly allocated to the operating department.

Allocation of the service department’s cost to the consuming department using the direct method and the predetermined overhead rate.

Answer 10

3.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The amount of overhead cost for the job using overhead rates computed in parts 1 and 2.

Answer 11

3.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The amount of overhead cost for the job using overhead rates computed in parts 1 and 2.

Answer 12

3.

b.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The reason the step-down method is a better base for computing the predetermined rates than the direct method.

Answer 13

3.

b.

To determine

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The reason the step-down method is a better base for computing the predetermined rates than the direct method.

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 5 - Applying merchandising terms C1 P1 Enter the...Ch. 5 - Identifying inventory costs C2 Costs of $5.000...Ch. 5 - Merchandise accounts and computations C2 Use the...Ch. 5 - Computing net invoice amounts P1 Compute the...Ch. 5 - Recording purchases, returns, and discounts taken...Ch. 5 - Recording purchases and discounts taken P1 Prepare...Ch. 5 - Recording purchases and discounts missed Pl...Ch. 5 - Prob. 8QS Ch. 5 - Prob. 9QS Ch. 5 - Prob. 10QS

Introduction: Direct method: Under the direct method, the overhead costs incurred by the supporting department are directly allocated to the operating department. Allocation of the service department’s cost to the consuming department using the direct method and the predetermined overhead rate.

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base. The amount of overhead cost for the job using overhead rates computed in parts 1 and 2.

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Chapter 5 Solutions

Introduction:

Direct method: Under the direct method, the overhead costs incurred by the supporting department are directly allocated to the operating department.

Allocation of the service department’s cost to the consuming department using the direct method and the predetermined overhead rate.

Step-down method: The overhead costs of supporting incurred by the supporting department are allocated to other supporting departments and also the operating department based on the allocation base.

The amount of overhead cost for the job using overhead rates computed in parts 1 and 2.