Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Eastside 25,000 $360,000 8,100 $ 99,000 Required A Required B Westside 6,250 $ 240,000 2,700 $ 108,000 Staff hours Staff costs General operating costs Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Complete this question by entering your answers in the tabs below. Total 31,250 $ 600,000 10,800 $ 207,000 $360,000 per client Compute the predetermined overhead rate used to pply seneral operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your answer to 2 decimal places. Predetermined overhead rate < Required A Required B >

Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Eastside 25,000 $360,000 8,100 $ 99,000 Required A Required B Westside 6,250 $ 240,000 2,700 $ 108,000 Staff hours Staff costs General operating costs Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Complete this question by entering your answers in the tabs below. Total 31,250 $ 600,000 10,800 $ 207,000 $360,000 per client Compute the predetermined overhead rate used to pply seneral operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your answer to 2 decimal places. Predetermined overhead rate < Required A Required B >

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
TASK A. Problem Solving. Analyze the given problem and perform the required tasks in the worksheet provided. 1. A hospital has P250,000 expected utility bill this year. The janitorial, accounting, and orderlies departments are service departments servicing the operating, hospital rooms, and laboratories departments. Floor spaces assigned to each department are as follows Department Square Footage Janitorial Accounting Orderlies 1,000 2,000 7,000 Operating Hospital rooms Laboratories 4,000 30,000 6,000 How much of the P200,000 will eventually become the hospital rooms department's total costs, assuming a direct allocation based in square footage is used? 2. The Laptop complex, which offers two main services: 1) time on a time-shared computer and (2) propriety computer programs. Computer time is provided by the Operating Department (OD), and programs are written by the programming Department(PD). Usually, the Operating Department spends P 9,000 and the Programming Departmemnt spends…
The Hospital La Salud forthe following data on electricity costs and the number of patients per month of the last year for you to develop a cost function. Electricity costs $5,500 5,800 Patients 1,836 2,100 2,914 1,258 1,025 1,416 2,965 2,692 1,038 Months January Feb 6,200 4,325 4,025 4,445 6,500 5,890 3,900 3,700 3,990 4,998 Sea April May Jun Jul Aug Setp Oct 950 Nov 1,100 Dec 1,564 Requirements: 1. Using the High Low Method determine the FIXED COST AND VARIABLE COST 2. EXPRESS THE COST FUNCTION SUPPOSE FOR THE FIRST TRIMESTRE OF THE ANUS, YOU HAVE PROJECTED THE FOLLOWING NUMBERS OF PATIENTS: January 2,985/ Feb 3,250/ March 4,950 Present the total cost for each projected month. 3. 4. Present the above using the DATA ANALYSIS TOOL in EXEL
< 1. 2. 3. LA b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent. per unit c. Journalize the summary transactions (1)-(4) for June. If required, round your answers to one decimal place. If an amount box does not require an entry, leave it blank. 4. Cost eBook Show Me How Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $38. The budgeted conversion cost for the year is $151,200 for 2,800 production hours. A unit of Style Omega requires 20 minutes of cell production time. The following transactions took place during June: a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent. per hour 4. Sale 1. Materials were acquired to assemble 640 Style Omega units for June. 2. Conversion costs were applied to 640 Style Omega units of production. 3. 600 units of Style Omega were completed in June. 4. 560 units of Style Omega were…
Indicate which of the following descriptions is most likely to describe each cost listed below.Description CostsEngineered cost Cost of ingredients in a breakfast cereal Committed cost Cost of advertising for a credit card company Discretionary cost Depreciation on an insurance company’s computer Cost of charitable donations that are budgeted as 1 percent of sales revenue Research and development costs, which have been budgeted at $45,000 per year
Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services Department (CCS) costs to profit centers. The following table lists the types of services and cost drivers for each service. The table also includes the budgeted cost and quantity for each service for August. CCS ServiceCategory Cost Drivers Budgeted Cost Budgeted Quantityof Services Help desk Number of calls $50,400 2,800 Network center Number of devices monitored 170,100 2,100 Electronic mail Number of user accounts 151,700 4,100 Smartphone support Number of smartphones issued 115,600 3,400 One of the profit centers for Varney Corporation is the Communication Systems (COMM) sector. Assume the following information for COMM: • COMM has 2,400 employees, of whom 40% are office employees. • All the office employees have been issued a smartphone, and 92% of them have a computer on the network. • Ninety percent of the employees with a…
Carla Vista Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2022 are available for Carla Vista: Technicians' wages and benefits Parts manager's salary and benefits Office employee's salary and benefits Other overhead Total budgeted costs (a) Rate charged $ Time Charges Material Loading Charges $245,830 Calculate the rate charged per hour of labour. eTextbook and Media Save for Later 47,580 31,720 $325,130 The company wants a $30 profit margin per hour of labour and a 25% profit margin on parts. It has budgeted for 7,930 hours of repair time in the coming year and estimates that the total invoice cost of parts and materials in 2022 will be $388,000. $36,860 16,490 per hour 25,220 $78,570 Attempts: 0 of 2 used Submit Answer
Howard Cooper, the president of Campbell Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour $ 85.00 Labor cost 37.00 Overhead cost 7.10 Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative 3.80 $522,000 142,000 Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 45,000 hours of services in Year 3. b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Campbell charges customers $80 per hour, the firm can achieve 50,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same…
Better Finance (previously Bill Float), based in San Francisco, California, provides leasing and credit solutions to consumers and small businesses. If Better Finance wants to distribute $38,000 worth of overhead by sales. New customer sales (NCS) Current customer new sales (CCNS) Current customer loan extension sales $ 4,235,000 4,235,000 3,630,000 (CCLES) $12,100,000 Calculate the overhead expense for each department. Overhead expense New customer sales Current customer new sales Current customer loan extension sales
Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services Department (CCS) costs to profit centers. The following table lists the types of services and cost drivers for each service. The table also includes the budgeted cost and quantity for each service for August. CCS ServiceCategory Cost Drivers Budgeted Cost Budgeted Quantityof Services Help desk Number of calls $70,300 3,700 Network center Number of devices monitored 140,400 1,800 Electronic mail Number of user accounts 148,500 4,500 Smartphone support Number of smartphones issued 87,000 3,000 One of the profit centers for Varney Corporation is the Communication Systems (COMM) sector. Assume the following information for COMM: • COMM has 2,300 employees, of whom 25% are office employees. • All the office employees have been issued a smartphone, and 93% of them have a computer on the network. • Ninety percent of the employees with a…
Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing and Communications Services Department (CCS) costs to profit centers. The following table lists the types of services and cost drivers for each service. The table also includes the budgeted cost and quantity for each service for August. CCS Services Cost Drivers Budgeted Cost Budgeted Quantityof Services Help desk Number of calls $90,000 3,600 Network center Number of devices 120,000 1,500 Electronic mail Number of user accounts 160,000 5,000 Smartphone support Number of smartphones issued 72,000 4,000 One of the profit centers for Varney Corporation is the Communication Systems (COMM) division. Assume the following information for COMM: COMM has 2,500 employees, of whom 20% are office employees. All of the office employees have been issued a smartphone, and 95% of them have a computer on the network. One hundred percent of the employees with a computer also…