PROBLEMSNote the following information concerning the direct costs of each of the following fourdepartments:1)Supplied by:HRPMHuman Resources$ 975,000A)B)C)D)Human ResourcesPlantMaintenance$1,300,000PlantMaintenance15%CuttingPolishing$7,685,000 $8,755,00015%Based on the above information, prepare the followingAllocate costs by the direct method.Cutting50%45%Polishing35%40%Allocate costs by the step-down method (Human Resources first)Allocate costs by the step-down method (Plant Maintenance first)Allocate costs by the reciprocal method

“Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

1) Note the following information concerning the direct costs of each of the following four departments: Human Resources $ 975,000 Supplied by: A) B) C) Human Resources Plant Maintenance $1,300,000 (bo CD a Plant Maintenance 15% Cutting $7,685,000 Cutting 50% 45% HR PM 15% Based on the above information, prepare the following Allocate costs by the direct method. Polishing $8,755,000 Polishing 35% 40% Allocate costs by the step-down method (Human Resources first) Allocate costs by the step-down method (Plant Maintenance first)

1) Note the following information concerning the direct costs of each of the following four departments: Human Resources $ 975,000 Supplied by: A) B) C) Human Resources Plant Maintenance $1,300,000 (bo CD a Plant Maintenance 15% Cutting $7,685,000 Cutting 50% 45% HR PM 15% Based on the above information, prepare the following Allocate costs by the direct method. Polishing $8,755,000 Polishing 35% 40% Allocate costs by the step-down method (Human Resources first) Allocate costs by the step-down method (Plant Maintenance first)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

See similar textbooks

Similar questions

Determine fixed costs using the high-low method from the following data: Total Costs Level of Activity P65,000 11,250 P52,000 8,000 P86,000 16,500 a. P45,000 b. P20,000 c. P16,500 d. P9,500
Shown below is a comparison between thebudgeted and actual costs data for the MixingDepartment headed by Ms. Candy.Budget ActualSalaries and wages P 20,000 P 20,000Supplies 8,000 12,000Postage, telephone and telegraph 2,500 3,700Repairs and maintenance 4,000 2,500Depreciation 3,000 2,000Light and water 2,000 2,800The decrease in depreciation cost and repairs andmaintenance is due to the disposal of an equipment duringthe period. The disposal was approved by the VicePresident for Production when the Mixing Departmentreported that the equipment was not functioning efficiently.On the other hand, the increase in light and water cost isdue to the adjustment in power rates imposed by ManilaElectric Company.Determine the amount of cost variance that must beconsidered in evaluating the performance of the MixingDepartment.
Use the following information to answer questions 2 through 6: M2). The following information is available. A company has two service departments (S1 and 52) and two manufacturing divisions (M1 and Percent Allocable to $2 20% Costs Incurred Department $1 $200,000 500,000 d. 62.5% $2 50% 2. Using the direct method, what proportion of S1's costs will be allocated to M2! a 20% b. 37.5% C. $295,400 d. $302,500 3. Using the direct method, how much of the service department costs will be allocated to M1? a. $195,250 b. $205,750 c. $308,750 d. $326,450 4. Using the step method, how much of the service department costs will be allocated to M1? a. $243,000 b. $265.700 a. S1-$290,000+ 0.5 × $2 b. S1-$290,000+ 0.2 × S2 c. S1-$290,000+ 0.3 × $2 715473_1&course_id=_31557 M1 M2 expressed? Using the reciprocal method, how should the total service department costs of S1 be E d. S1 - $500,000+ 0.5 × $2 Matching.docx 6. Using the reciprocal method, how much of the service department costs will be…
Required: (for peso value round off to P1.00; two decimal places for percentage) Using the direct method, allocate service department costs to producing departments and calculate the overhead rates for each producing department
Considering the reciprocal services method, what are the equations that represent the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $350,000 of direct costs but also 30% of the Maintenance Department (M) cost and the Maintenance Department that includes not only $50,000 of direct costs but also 50% of the Janitorial Department? (0.30×M) 3nd M-S50000 (0.50 x J) 3=5350.000 + (0.30 × M) and MES5O00+(0,50 xJ) J-(S350.000 × 0.30)+M and M-(S50.000 x050) - J (550.000x0.502)
Original costs Proportion of Administrative hours used Proportion of Information Systems hours used Proportion of Maintenance hours used (a) Total costs Administrative Institutional $77,000 0.20 Operating Segments 0.10 Support Departments Information Systems Maintenance $110,600 $62,000 0.10 Retail 0.10 0.10 0.10 Operating Segments Institutional Retail $649,000 $351,000 0.45 0.40 Determine the total costs that each operating segment would be accountable for if support costs are allocated using the direct method. (Round interme 0.30 0.35 0.30 0.50
Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each prod-uct. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities.2. Calculate the error relative to the fully specified ABC product cost and comment on the outcome.3. What if activities 1, 2, 5, and 8 each had a cost of $650,000 and the remaining activities hada cost of $50,000? Calculate the cost assigned to Wafer A by a fully specified ABC systemand then by an approximately relevant ABC approach. Comment on the implications forthe approximately relevant approach.
How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipment
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
Assume that the costs per EUP for material and conversion are P1.00 and P1.50, respectively. Using FIFO, what is the total cost assigned to the transferred-out units (rounded to the nearest peso)? P237,000 P224,938 P244,438 P245,750
Choose the most appropriate answer(s): Conversion cost is $20,000 and manufacturing overhead cost is $7,000, then direct manufacturing labor cost will be: $27,000 $13,000 $130,000 $29,500 Terms used in manufacturing cost systems are: manufacturing costs prime costs conversion costs both B and C
Fill in the blanks for each of the following independent cases. E (Click the icon to view the cases.) (For entries with a $0 balance, make sure to enter "0" in the appropriate cell. Round the contribution margin percentage to the nearest whole percent.) Variable Fixed Total Operating Contribution Case Revenues Costs Costs Costs Income Margin Percentage $ 2,800 $ 500 $ 400 $ 900 $ 1,900 82 % a. b. $ 2,900 2$ 400 2$ 1,200 % - X Data Table Contribution Fixed Costs Margin Percentage Variable Total Operating Income Case Revenues Costs Costs Case a. $ 500 $ 900 $ 1,900 Case b. $ 2,900 $ 400 $ 1,200 Case c. 2$ 1,000 $ 600 $ 1,000 Case d. $ 1,800 $ 400 50% Print Done