!Required Information[The following information applies to the questions displayed below.]Caro Manufacturing has two production departments, Machining and Assembly, and two service departments,Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the variousdepartments for the month of August follow:DepartmentMachiningAssemblyMaintenanceCafeteriaDirectCosts$100,00066,40041, 20033,000Job CM-22: Machine-hoursJob CM-23:Labor-hoursMachine-hoursLabor-hoursMachiningAssemblyJob CM-22Maintenance Cafeteria0.6Machining150404030Proportion of Services Used byAssume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocatedto jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in eachdepartment are as follows:Job CM-230.2Assembly403020220Machining0.50.2AssemblyRequired:How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23? (Round "Department rate" to 2 decimal places and final answers to the nearestwhole dollar.)0.30.2

The question is based on the concept of Cost Accounting.

Required Information [The following information applies to the questions displayed below.] Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Machining Assembly Maintenance Cafeteria Direct Costs $100,000 66,400 41,200 33,000 Proportion of Services Used by Maintenance Cafeteria Machining Assembly 0.6 0.2 0.5 52 0.2 0.3 0.2 sume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are alloca jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in ea

Required Information [The following information applies to the questions displayed below.] Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Department Machining Assembly Maintenance Cafeteria Direct Costs $100,000 66,400 41,200 33,000 Proportion of Services Used by Maintenance Cafeteria Machining Assembly 0.6 0.2 0.5 52 0.2 0.3 0.2 sume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are alloca jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in ea

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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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
Lewisville CorporationIn order to better match cost with revenues, Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here. Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to: Maintenance Dept. 10% Utilities Dept. 20% Producing Dept. A 40% 30% Producing Dept. B 40% 60% Assume that Lewisville Corporation distributes service department overhead costs based on the algebraic method. What would be the formula to determine the total maintenance costs? Group of answer choices M = $18,700 + .10U M = $9,000 + .20U M = $18,700 + .30U + .40A + .40B M = $27,700 + .40A + .40B
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! Required information The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Costs Number of employees Square feet of space occupied Hours of press time Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance $ 154,000 $ 115,500 $ 52,800 140 20,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). $ 60 15,000 Required: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line should add across to zero. Do not round intermediate calculations.) Service…
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Appendix 4B) Assigning Support Department Costs by Using the Direct Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Support Departments Producing Departments S1 S2 Cutting Sewing Direct costs $180,000 $150,000 $122,000 $90,500 Normal activity: Number of employees — 30 63 147 Maintenance hours 1,200 — 16,000 4,000 Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratios—one for Cutting and the other for Sewing.) Enter your answers as decimal values. S1 S2 Cutting Sewing 2. Allocate the support department costs to the producing departments by using the direct method. Use a…
Required information The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Costs Number of employees Square feet of space occupied Hours of press time Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance $ 144,200 $ 108,150 $ 49,440 140 20,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 60 15,000 Administration $ The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Service Departments Janitorial $ 144,200 $ 108,150 $ 35 10,000 Required: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line…
Required information [The following information applies to the questions displayed below.] Adria Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools: Expected Activity Overhead Expected Activity 6,500 DLHS 2,400 orders 700 receipts 1,400 relays 41,000 MHs Activity Cost Pool Labor-related Purchase orders Measure Cost $ 58,500 $ 12,000 $ 11, 200 $ 14,000 $369, 000 Direct labor-hours Material receipts Relay assembly General factory Number of orders Number of receipts Number of relays Machine-hours Required: 1. Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate Labor-related per DLH Purchase orders per order Material receipts per receipt Relay assembly per relay General factory per MH
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Management and Allocation Assignm... i) Saved Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Direct Costs $120,000 76,000 54,000 37,000 Maintenance Machining Assembly Department Machining Assembly Maintenance Cafeteria Cafeteria 0.6 0.2 0.2 0.1 0.2 0.7 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria). Complete this question by entering your answers in the tabs below. Required A Required B The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations.) To Cafeteria Machining Assembly From Maintenance…
4 Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT -- Service department costs IT allocation Accounting allocation HR allocation Total costs allocated 0% 10% Accounting HR 0% 20% 0% -- 10% $ -- The direct costs of the service departments in the previous period were $91,000 for IT, $116,000 for Accounting, and $155,000 for HR. IT West 40% 40% 60% Required: Use the direct method to allocate the service department costs to the production departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. East 40% 60% 20% Accounting 0 $ 0 $ Check my work HR 0 $ West 0 $ East 0
es Required information [The following information applies to the questions displayed below.] Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Totals Controllable Costs Totals Budget Snowmobile $ 20,370 11,300 5,200 4,290 450 6,600 $ 48,210 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. $ Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Budgeted Controllable Costs ATV $ 28,400 21,400 6,100 990 630 7,200 $ 64,720 0 $ Snowmobile $ 20,320 11,650 5,300 4,070 420 6,200…