mn.4 PR 6-6 (Algo) (LO 6.1, 6.3) Williams Electric Corporation...Williams Electric Corporation has two support departments, Human Resources (HR) and Information Technology (IT). HR costs for theyear total $304,000 and are allocated based on employee count. IT costs for the year total $424,000 and are allocated according tothe number of hours that employees are logged onto the computer network. Use the data below to allocate support-department coststo Williams Electric Corporation's two production departments: Interior and Exterior.Support DepartmentsHR: Number ofemployeesIT: Network hoursCosts to allocateRequired:Human Resources540,000$ 304,000Production DepartmentsInformationTechnologyInteriorExteriorTotal20354510512,000$ 424,00045,000$ 015,000$ 0112,000$ 728,000Prepare a schedule that allocates support department costs using the direct method. Compute the total amount of support costsallocated to each operating department: Interior and Exterior.Questiona. What is the total amount of support costs allocated to Interior?b. What is the total amount of support costs allocated to Exterior?AnswerTotal $0.00

Under the direct method of allocating the support departments costs to the production departments,…

Answered: PR 6-6 (Algo) (LO 6.1, 6.3) Williams…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.6.6P: Standards for nonmanufacturing expenses The Radiology Department provides imaging services for...

See similar textbooks

Similar questions

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
Refer to the interview in Exercise 4.17 (especially to Question 4 and 7). The general ledger reveals the following annual costs: Supervisor’s salary $ 64, 600 Clerical salaries 210,000 Computers, desks, and printers 32,000 Computer supplies 7,200 Telephone expenses 4,000 ATM $ 1,250,000 All non labor resources, other than the ATM, are spread evenly among the eight credit department employees (in terms of assignment and usage). Credit department employees have no contact with ATMs. Printers and desks are used in the same ratio as computers by the various activities. Required: Determine…
At the end of the year, the Comptroller accumulated the total actual costs and hours incurred by Department A and Department B during the year for the company. Using the information provided below, calculate the final overhead rates for both departments. Plant Total Department B Department A $25,000 $362,000 $337,000 Direct Material Cost $99,000 $459,400 $360,400 Direct Labor Cost $495,000 $794,000 $299,000 Department Overhead Cost 43,000 9,000 34,000 Direct Labor Hours 42,000 41,000 1,000 Machine Hours per direct labor hour Department A: Department B per machine hour
The following information relates to company XYZ.Manufacturing overheads: BWPLighting & Heating 8 000Administration employees 70 000Employee accident insurance 1 200Plant and Equipment Insurance 70 000Plant and Equipment maintenance & repairs (minor) 20 000Plant and Equipment maitenance & repairs (major) 200 000Rent 25 000 Allocation by department Department A Department B TotalArea occupied (sqm2) 1 200 2300 3 500Depreciation 20 000 40 000 60…
The following information relates to company XYZ.Manufacturing overheads: BWPLighting & Heating 8 000Administration employees 70 000Employee accident insurance 1 200Plant and Equipment Insurance 70 000Plant and Equipment maintenance & repairs (minor) 20 000Plant and Equipment maitenance & repairs (major) 200 000Rent 25 000 Allocation by department Department A Department B TotalArea occupied (sqm2) 1 200 2300 3 500Depreciation 20 000 40 000 60…
The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Service Department Operating Department A B C 1 2 Total Overhead costs £ 100,000 £ 115,000 £ 73,000 £ 266,500 £ 289,000 £ 843,500 Number of employees 57 33 132 297 198 717 Square feet of space occupied 12,600 7,100 21,000 42,000 105,000 187,700 Hours of press time 34,000 68,000 102,000 The company allocates service department costs by the step method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. Required: Using the step method, allocate the service department costs to the operating departments. (Do not round intermediate calculations. Amounts to be deducted…
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $489,600 are allocated on the basis of machine hours. The Accounting Department's costs of $122,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $210,000 and $410,000, respectively. Maintenance Accounting A B Machine hours 895 80 2,400 320 Number of employees 2 2 8 4 What is the cost of the Accounting Department's cost allocated to Department A using the step method and assuming the Maintenance Department's costs are allocated first? Note: Do not round intermediate calculations. $87,184 $90,672 $90,926 $81,600
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 West East IT -- 0% 20% 40% 40% Accounting 0% -- 0% 40% 60% HR 10% 10% -- 60% 20% 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. Required: Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by IT, and then Accounting. Note: Amounts to be deducted should be indicated by a minus sign. IT Accounting HR West East Service department costs $ 0 HR allocation IT allocation Accounting allocation Total costs allocated $ 0 $ 0 $ 0 $ 0 $ 0 Need help please
Edward ltd comprises of 3 production departments and 2 service departments. The following information is provided for Edward Ltd for 2019. Supervisor's Salary $ Machining 300,000 Assembly 200,000 Finishing 250,000 Canteen 120,000 Maintenance 150,000 $ Factory Rent 300,000 Heat & Light 200,000 General Repairs 60,000 Machine Depreciation 80,000 Machine Insurance 90,000 Business Rates 75,000 Machining Assembly Finishing Canteen Maintenance Floor Space occupied (m2) 400 200 200 150 50 Value of machinery ($'000) 300 400 200 50 50 The service department work for other departments as follows Machining Assembly Finishing Canteen Maintenance Service carried out by canteen Canteen 30% 30% 40% Maintenance 25% 50% 25% Using the overhead analysis sheet for 2019, determine the overhead allocated and apportioned to each of the five departments. Calculate the total overheads included in the…
The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $489,600 are allocated on the basis of machine hours. The Accounting Department's costs of $122,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $210,000 and $410,000, respectively. Maintenance Accounting A B Machine hours 895 80 2,400 320 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method? Note: Do not round intermediate calculations.
Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: \table[[,IT,HR,Publishing,Binding],[,0,1,550,2,480,2,170],[IT tickets,16,0,24,40],[\table[[Employees],[Department direct costs]],$154,000,$248,400,$432,000,$395,000
The following information relates to Washington, Inc.: Advertising Costs $11,200 Sales Salary 11,800 Sales Revenue 460,000 President's Salary 300,000 Office Rent 62,000 Manufacturing Equipment Depreciation 1,000 Indirect Materials Used 5,800 Indirect Labor 11,000 Factory Repair and Maintenance 900 Direct Materials Used 28,000 Direct Labor 28,000 Delivery Vehicle Depreciation 1,650 Administrative Salaries 29,500 How much were Washington's product costs? A. $471,200 B. $576,150 C. $329,500 D. $74,700

SEE MORE QUESTIONS

Recommended textbooks for you

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS