Washington Arts allocates marketing and administrative costs to its three schools based on total annual tuition revenue for the schools: School Longview Campus Springhill Campus Center Saint Campus Total Tuition revenue $ 1,400,000 $ 1,200,000 $ 1,400,000 $ 4,000,000 Marketing and administrative
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Q22
Washington Arts allocates marketing and administrative costs to its three schools based on total annual tuition revenue for the schools:
School | Longview Campus | Springhill Campus | Center Saint Campus | Total |
---|---|---|---|---|
Tuition revenue | $ 1,400,000 | $ 1,200,000 | $ 1,400,000 | $ 4,000,000 |
Marketing and administrative | $ 1,600,000 |
Using revenue as an allocation base, the amount of costs allocated to the Springhill Campus is calculated to be:
-
$640,000.
-
$560,000.
-
$400,000.
-
$480,000.
-
$760,000.
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- Variable costing income statement for a service companyThe actual and planned data for Underwater University for the Fall termwere as follows: EnrollmentTuition per credit hourCredit hoursRegistration, records, and marketing cost per enrolled studentInstructional costs per credit hourDepreciation on classrooms and equipment 4,500$12060,450$275 $64$825,600 4,125$13543,200$275 $60$825,600 Registration, records, and marketing costs vary by the number ofenrolled students, while instructional costs vary by the number of credithours. Depreciation is a fixed cost. A. Prepare a variable costing income statement showing thecontribution margin and operating income for the Fall term.B. Prepare a contribution margin analysis report comparingplanned with actual performance for the Fall term.Roque Press has the service departments (administration and an and two operating departments (college texts and professional publications). Following are the direct costs and allocation bases for each of these areas: Department Administration Editorial College texts Professional publications Direct Costs P 450,000 350,000 2,250,000 950,000 a. P2,250,000 b. P2,702,566 c. P2,493,964 d. P2,458,602 ALLOCATION BASES Pesos of Assets Employed P 620,000 144,000 1,200,000 1,056,000 Number of Employees 10 8555 35 Company management has decided to allocate administration and editorial costs using the pesos of assets employed and number of employees, respectively. Using the reciprocal (algebraic) method: 29. What is the total operating cost after allocation of college textbooks?Problem 11-60 (Algo) Cost Allocation: Step and Reciprocal Methods (LO 11-1) Dunedin Bank has two operating departments (Retail and Commercial) and three service departments: Operations, Information Technology (IT), and Transactions. For the last period, the following costs and service department usage ratios were recorded: Supplying Department Transactions IT Operations Direct cost IT From: Operations Transactions Transactions Total 8 18% 70% $ 310,000 IT Costs Operations S 250,000 $ 750,000 670,000 x 1,510,000 x Using Department Operations 8 8 8 $ $ 730,000 Required: a. Allocate the service department costs to the two operating departments using the reciprocal method. x Answer is complete but not entirely correct. Allocated to: Transactions 250,000 XS 2,233,333 x $ 8 30% 8 $ 1,570,000 $ 3,770,000 Retail 0X X $ Retail OX 0x 0 Commercial S 70% 30% 18% 833,333 X 0x 0 x 833,333 Commercial 30% 38% 28 $ 2,320,000
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- Exercise 15-30 (Algo) Evaluate Transfer Pricing System (LO 15-2, 3) Hardyke Group operates a local after-school recreation and activities program. The Education Department is a state governmental agency. Hardyke has an agreement with the Department to provide services to students in need for a nominal $1 per day, to be paid by the student. The government will reimburse Hardyke for the "cost" of providing daily services used by a student. The regular price to participate in the program is $6.50 per day. After analyzing its costs, Hardyke calculates that, with its operating deficit, the full cost of each student for a day is $9.00. All programs that Hardyke offers are unaffected by the number of students paying the nominal fee. Required: b. Which price would Hardyke Group prefer? Note: Enter your answer to 2 decimal places. c. Which price would the Education Department prefer? Note: Enter your answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.…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-BaseUsage Facilities Square feet $800,000 80,000 square feet Instruction Number of course sections 1,200,000 600 sections Student services Number of students 290,000 2,500 students The activity-base usage associated with the Archaeology and Geology departments is as follows: Department Facilities Instruction Student Services Archaeology 8,000 square feet 8 sections 150 students Geology 5,200 square feet 15 sections 200 students Determine the activity rate for each activity. Activity Activity Rate Facilities per sq. ft. Instruction per section Student services per…Variable Costing Income Statement for a Service Company The actual and planned data for Underwater University for the Fall term were as follows: Actual Planned Enrollment 4,500 4,125 Tuition per credit hour $120 $135 Credit hours 60,450 43,200 Registration, records, and marketing costs per enrolled student $275 $275 Instructional costs per credit hour $64 $60 Depreciation on classrooms and equipment $825,600 $825,600 Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a fixed cost. Prepare a variable costing income statement showing the contribution margin and operating income for the Fall term. Underwater University Variable Costing Income Statement For the FalI Term Revenue Variable costs: Registration, records, and marketing costs $ Instructional costs Total variable costs Contribution margin Check My Work Previous Next All work saved. Save and Exit Submit Assignment for…
- 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-BaseUsage Facilities Square feet $800,000 80,000 square feet Instruction Number of course sections 1,200,000 600 sections Student services Number of students 290,000 2,500 students The activity-base usage associated with the Archaeology and Geology departments is as follows: Department Facilities Instruction Student Services Archaeology 8,000 square feet 8 sections 150 students Geology 5,200 square feet 15 sections 200 students a. Determine the activity rate for each activity. Activity Activity Rate Facilities $fill in the blank 1 per sq. ft. Instruction $fill in the blank 2 per section Student services $fill in the blank 3 per student b. Determine the…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: Budgeted Activity-Base Activity Activity Base Activity Cost Usage Facilities Square feet $800,000 80,000 square feet Instruction Number of course sections 1,200,000 600 sections Student services Number of students 290,000 2,500 students The activity-base usage associated with the Archaeology and Geology departments is as follows: Department Facilities Instruction Student Services Archaeology 8,000 square feet 8 sections 150 students Geology 5,200 square feet 15 sections 200 students a. Determine the activity rate for each activity. Activity Activity Rate Facilities per sq. ft. Instruction per section Student services per student b. Determine the total activity cost for the Archaeology Department. Total activity cost NextProblem 11-60 (Algo) Cost Allocation: Step and Reciprocal Methods (LO 11-1) Dunedin Bank has two operating departments (Retail and Commercial) and three service departments: Operations, Information Technology (IT), and Transactions. For the last period, the following costs and service department usage ratios were recorded: Supplying Department Transactions IT Operations Direct cost Using Department Transactions IT Operations Retail Commercial Ө Ө 70% 30% 10% Ө 20% 30% 40% 50% Ө Ө 10% 40% $ 390,000 $ 810,000 $ 1,650,000 $ 3,850,000 $ 2,400,000 Required: a. Allocate the service department costs to the two operating departments using the reciprocal method. From: Costs Operations Allocated to: Transactions Retail Commercial IT $ 810,000 $ 162,000 $ 81,000 $ 243,000 $ 324,000 Operations Transactions Total $ 243,000 $ 324,000