Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: User of Service Library Computing Services Liberal Arts Sciences Library Computing Services Provider of Service Computing Library Services 10% The budgeted costs in the two service departments for the year are as follows: Provider of Service 60% 40% Library Computing Services Total $700,000 270,000 Required: 1. Use the direct method to allocate the budgeted costs of the Library and Computing Services Department to the college's Liberal Arts and Sciences departments. (Do not round intermediate calculations.) 20% 70% Liberal Arts Sciences

Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: User of Service Library Computing Services Liberal Arts Sciences Library Computing Services Provider of Service Computing Library Services 10% The budgeted costs in the two service departments for the year are as follows: Provider of Service 60% 40% Library Computing Services Total $700,000 270,000 Required: 1. Use the direct method to allocate the budgeted costs of the Library and Computing Services Department to the college's Liberal Arts and Sciences departments. (Do not round intermediate calculations.) 20% 70% Liberal Arts Sciences

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 38P: Friendly Bank is attempting to determine the cost behavior of its small business lending operations....

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Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: User of Service Library Computing Services Liberal Arts Sciences Provider of Service Computing Services 20% Library Computing Services Library 65% 35% The budgeted costs in the two service departments for the year are as follows: $1,090,000 550,000 30% 50% Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. (Do not round intermediate calculations.) Allocation of Computing Service costs Allocation of Library costs Total costs allocated to each department Liberal Arts Sciences
Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended. Department Admissions Registrar Computer Services Division Liberal Arts Annual Cost $136,000 233,000 492,000 Sciences Business Administration Budgeted Budgeted Enrollment Credit Hours 2,900 1,750 1,650 49,000 42,250 36,250 Required: 1. Distribute the departmental costs to the college's three divisions based on the allocation base given. 2. Choose the better allocation base for distributing the cost to the following departments: Department and Allocation Base Planned Courses Requiring Computer Work Complete this question by entering your answers in the tabs below. Admissions (enrollment) Registrar (credit hours) Computer Services (courses requiring…
Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended. Department Admissions Annual Cost $118,000 Registrar Computer Services 197,000 420,000 Planned Courses Budgeted Enrollment Budgeted Credit Hours Requiring Computer Work 12 es Division Liberal Arts Sciences Business Administration 1,100 850 31,000 28,750 22,750 25 750 25 Required: 1. Distribute the departmental costs to the college's three divisions based on the allocation base given. 2. Choose the better allocation base for distributing the cost to the following departments: Complete this question by entering your answers in the tabs below. Required 1 Required 2 1 of 7 Next > Prev
University of Tampa offers high-quality undergraduate-level programs. UT has two principal operating departments, College of Business and Sciences, and two support departments, Facility Services and Admissions. The base used to allocate facility services is budgeted total maintenance hours. The base used to allocate admissions costs is number of credit hours for a department. The Facility Services budget is $280,000, while Admissions budget is $450,000. Interdepartmental usage is as follows: Services Provided: (Annually) Facilities Admissions COB Sciences Facilities 0 1,500 3,500 5,000 (in hours) Admissions 1,000 0 15,000 9,000 (in credit hrs) (a) Use the Direct Method to allocate support department costs. The amount of Facilities support costs allocated…
University of Tampa offers high-quality undergraduate-level programs. UT has two principal operating departments, College of Business and Sciences, and two support departments, Facility Services and Admissions. The base used to allocate facility services is budgeted total maintenance hours. The base used to allocate admissions costs is number of credit hours for a department. The Facility Services budget is $280,000, while Admissions budget is $450,000. Interdepartmental usage is as follows: Services Provided: (Annually) Facilities Admissions Facilities 0 1,500 COB Sciences 3,500 5,000 (in hours) Admissions 1,000 0 15.000 9,000 (in credit hrs) Use the Reciprocal method to allocate support department costs. What amount of Admissions support costs will be allocated to COB?
Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended. Annual Cost Department Admissions Registrar Computer Services $130, 000 221,000 468,000 Planned Courses Budgeted Budgeted Credit Hours Requiring Computer Work Division Enrollment Liberal Arts Sciences 2,300 43,000 37,750 31,750 25 1,450 37 Business Administration 1,350 37 Required: 1. Distribute the departmental costs to the college's three divisions based on the allocation base given. 2. Choose the better allocation base for distributing the cost to the following departments: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prev 1 of 7 Next > hulu
Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended. Department Admissions Registrar Computer Services Division Liberal Arts Sciences Business Administration Required 1 Annual Cost $119,000 199,000 424,000 Required 2 Budgeted Enrollment 1,200 900 800 Required: 1. Distribute the departmental costs to the college's three divisions based on the allocation base given. 2. Choose the better allocation base for distributing the cost to the following departments: Registrar Computer Services Complete this question by entering your answers in the tabs below. Budgeted Credit Hours 32,000 29,550 23,500 Planned Courses Requiring Computer Work 12 26 26 Choose the better allocation base for distributing the cost to…
Troglodyte University uses activity-based costing to assign indirect costs to academic departments, using three activities. The activity base, budgeted activity cost, and estimated activity-base usage for each activity are identified as follows: Activity Activity Base BudgetedActivity Cost Activity-BaseUsageFacilities Square feet $800,000 80,000 square feetInstruction Number of course sections 1,200,000 600 sectionsStudent services Number of students 290,000 2,500 studentsThe activity-base usage associated with the Archaeology and Geology departments is as follows:Department Facilities Instruction Student ServicesArchaeology 8,000 square feet 8 sections 150 studentsGeology 5,200 square feet 15 sections 200 studentsa. Determine the activity rate for each activity.Activity Activity RateFacilities $ per sq. ft.Instruction $ per section
3.) Tusca National Bank has two service departments, the Human Resources Department and the Computing Department. The Bank has two other departments that directly service customers, the Deposit department and the Loan Department. The usage of the two service departments' output for the year is as follows: www.mw User of Service HR Computing Deposit Loan Provider of Service HR 30% 40% 30% Computing 10% 50% 40% The budgeted costs in the two service departments for the year as follows: HR: $ 300,000 Computing: $ 160, Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of HR and Computing departments.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity 8,000,000 pages Budgeted usage: Software Development 1,600,000 pages Training 3,000,000 pages Management 2,400,000 pages Cost equation $280,000 + $0.03 per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Training Department, assuming the Training Department actually made 2,770,000 copies during the year? Multiple Choice $193,900. $203,100. $180,050. $190,079.
The Document Creation Center (DCC) for Alegis Corp. provides photocopying and document services for three departments in the St. Paul office. The following budget has been prepared for the year. Available capacity Budgeted usage: Software Development Training Management Cost equation 13,000,000 pages 2,600,000 pages 4,875,000 pages 3,900,000 pages 55,000+ $0.03 per page If DCC uses a dual rate for allocating its costs based on usage, how much cost will be allocated to the Software Development Department?
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity 8,100,000 pages Budgeted usage: Software Development 1,700,000 pages Training 3,100,000 pages Management 2,500,000 pages Cost equation $285,000 + $0.02 per page If DCC uses a dual-rate for allocating its costs based on usage, how much cost will be allocated to the Software Development Department? Multiple Choice $116,740. $100,370. $45,630. $162,000.