Brownley Company has one service department and two operating (production) departments. Payroll Department costs are allocated To the two operating departments in proportion to the number of employees in each. Listed below are the operating data for the current period: Direct Expenses $ 28,000 81,000 110,800 No. of Employees Department Payroll Milling Assembly The total cost of operating the Milling Department for the current period is: 45 105
Q: Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries.…
A: The revenue generated after deducting all the costs incurred on the making of the goods and serving…
Q: While the operating budgets reflect the operating activities of the company, the financial budgets…
A: Cash Flow Statement - Cash Flow Statement includes three major activities like operating, Investing…
Q: -d a property for his For $100,000. At the tax assessment allo erty value to the lan d, Erik decided…
A: Tax assessment refers to the process of compiling and checking all the data filed by a taxpayer in…
Q: follows: Cash $ 46,000 Liabilities $ 186,000 Accounts receivable 76,000…
A: Liquidation of Partnership Firm : A partnership firm is said to be liquidated / dissolved when it…
Q: My follow up question is: Which method is better (plantwide rate method or department rate method)?
A: Plantwide rate method and department rate methods are two ways for allocating overhead costs. Under…
Q: Sunrise Oil owns a 100% working interest in an oil and gas lease. The Royalty on the lease is 12.5%,…
A: Lease is an agreement which gives one party the right to use asset of other party in exchange of…
Q: 2. True or false? Explain (a) (b) "When hourly wage increases, one should work more hours." "When…
A: The hourly wage system is a popular system of giving wages to employees. The workers get according…
Q: has a 12-year service life and a $120,000 salvage value, and it uses straight-line depreciation.…
A: Annual rate of return :- Annual rate of return by taking Annual profit after tax dividend by Annual…
Q: A company with excess capacity must decide between scrapping or reworking units that do not pass…
A: Lets understand the basics. When management have more than one alternative then management try to…
Q: On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: Why do you think investor would want more than 50% large percentage control of a company as far as…
A: Control of the company: To have control over a firm is to own a sufficient number of voting shares…
Q: At the end of March 2021, there were 700 units of a product manufactured by D & Y Manufacturing. The…
A: The cost of goods sold is calculated by adding the opening stock and purchases and deducting the…
Q: O Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has…
A: Bonds - Bonds are issued by the company as debt. It carried fixed rate of interest till its…
Q: What is the difference between an imposed budget and a participatory budget? Define and explain a…
A: Introduction A budget is a financial statement that the management develops to evaluate the…
Q: Inventory records for Dunbar Incorporated revealed the following: Date Transaction Apr. 1 Beginning…
A: Given that, Beginning inventory = 450 units @ $2.48 per unit Purchase = 350 units @ 2.76 per unit…
Q: Question #2 Cash budgeting is critical to a company’s financial information needs. The following…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: 60,000 45,000 29,100 $171,300 $171,300
A: Journal entries are those entries that include the daily transactions or events and are stated in…
Q: My question is asking the amount of the total variable expense. Please help.
A: Variable expenses are those which do not remain constant. These expense keeps on varying with the…
Q: The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two…
A: Overhead cost per unit is the amount of expense incurred per unit of a product other than direct…
Q: When using a standard cost system what term is used to denote that the actual cost is less than the…
A: Standard cost is calculated using estimated amounts. If the actual cost is less than the standard…
Q: Stateme Stevns Inc.'s Comparative Balance Sheets for 2021 and 2020 and Income Statement for 2020 are…
A: Cashflow statement tells about the inflow and outflow of cash from business activities during an…
Q: Which of the following is NOT one of the main parts of a business letter? O Heading Introduction O…
A: Business Latter :- Business latter is used while you mailing your documents & proofs regarding…
Q: Oaktree Company purchased new equipment and made the following expenditures: Purchase price Sales…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Based on the above and the result of your audit, answer the following(Round off present value…
A: Here discuss about the details of the notes receivable and its interest income collection for the…
Q: Government claims to unpaid taxes Salary during last month owed to Mr. Key - (not an officer)…
A: As per the given information: Free cash retained = $26,600 Unpaid taxes claimed by the government -…
Q: Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z.…
A: General factory cost is based on the direct labor hours. So the proportion of direct labor hour is…
Q: Assume Rock Bottom Golf is divided is from the most recent fiscal year. Sales Cost of goods Sold…
A: Introduction The departmental contribution to overhead is the sum that each department contributes…
Q: Determine the net income if Ofelia rented a property that was used as personal for 20 days and…
A: The net income is calculated by deducting the expenses from the revenues of the company. It is…
Q: Employee net pay Lindsey Vater's weekly gross earnings for the week ended March 9 were $1,200, and…
A: Net pay refers to an employee's wages after all withholdings have been made. Mandatory deductions…
Q: Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2, (2) an ordinary annuity of…
A: Cash Flow: Cash flow refers to the amount of cash or cash equivalents that a firm earns or spends as…
Q: During the year, Graham International made the following expenditures relating to plant, machinery,…
A: The costs that are expensed for regular repairs and maintenance during a particular period are…
Q: A. Based on the above and the result of your audit, answer the following(Round off present value…
A: Here discuss about the details of the calculation of the current portion of the notes receivable and…
Q: dation spreadsheet for continuous sale of inventory - Equity method Assume that a parent company…
A: Retained earnings refer to the sum value of money retained at a company after it has paid dividends…
Q: Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and…
A:
Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of…
A: Predetermined overhead rate is used to compute the overhead applied to the manufacturing company.…
Q: a. Journalize the entry to record the acquisition of the patent. If an amount box does not require…
A: This question belongs to the patents and the goodwill. The patent was acquired on 1st April for…
Q: Work in Process Account Data for Two Months; Cost of Production Reports Pittsburgh Aluminum Company…
A: Here discuss about the details of find out the equivalent unit of production and assigned to work in…
Q: Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z.…
A: Cost Driver: A cost driver is the factor that has the most significant influence on the overall…
Q: Obj. 1 PR 11-2A Differential analysis for machine replacement proposal Gutenberg Publishers Inc. is…
A: 1. Continue with the Old machine Replace old machine (Alternative 2) Differential effect of…
Q: Question 27 5.5 pts Beth sells a house to Ted for $427,500. Before selling the house, Beth forgets…
A: Introduction: Faucet: A faucet is a piece of equipment used to collect or control the liquid flow,…
Q: Accounting
A: Introduction: Passive Activity Rules: Passive activity loss restrictions are a collection of IRS…
Q: Deerborn Manufacturing Co. completed the following transactions during 2024 (Click the icon to view…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Accounting You are planning the audit of Cricket Ltd, for the year ended 30th June 2021. Cricket is…
A: Internal control is a procedure implemented by a company's management, board of directors, and other…
Q: Coronado Company has the following securities in its investment portfolio on December 31, 2020 (all…
A: In the context of the given question, we are required to prepare the journal entries of the Coronado…
Q: A corporation has a balance of $75,088 for CCA class 53 on January 1, 2021. Throughout 2021, the…
A: calculation of above requirement are as follows
Q: Discount-Mart issues $17 million in bonds on January 1, 2021. The bonds have a eight-year term and…
A: One of the source used by the business organizations in order to meet their financial requirements…
Q: Problem H For the year ended 2009 December 31, Fore Company reported the following information for…
A: Introduction Return on investment, also referred to as return on costs, is the ratio of net income…
Q: The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to…
A: Cash Distribution Plan: It is the ranking of partners in terms of vulnerability of possible losses…
Q: Shocking Electronics uses a standard part to make different types of radios. The total cost to make…
A: Working note: Fixed cost incurred if parts outsource Total fixed cost = $40000 $40000*80%= $32000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400Rockford Company has four departmental accounts: Building Maintenance, General Factory Overhead, Machining, and Assembly. The direct labor hour method is used to apply factory overhead to the jobs being worked on in Machining and Assembly. The company expects each production department to use 30,000 direct labor hours during the year. The estimated overhead rates for the year include the following: During the year, both Machining and Assembly used 28,000 direct labor hours. Factory overhead costs incurred during the year follow: In determining application rates at the beginning of the year, cost allocations were made as follows, using the sequential distribution method: Building Maintenance to: General Factory Overhead, 10%; Machining, 50%; Assembly, 40%. General factory overhead was distributed according to direct labor hours. Required: Determine the under- or overapplied overhead for each production department. (Hint: First you must distribute the service department costs.)
- A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had sales and variable costs of 500,000 and 225,000, respectively, and Seaside had sales and variable costs of 800,000 and 475,000, respectively. Salem had direct fixed production and administrative expenses of 60,000 and 35,000, respectively, and Seaside had direct fixed production and administrative expenses of 80,000 and 45,000, respectively. Fixed costs that were common to both divisions and couldnt be allocated to the divisions in any meaningful way were selling, 33,000, and administration, 27,000. Prepare a segmented income statement by division for March.Vargas, Inc., produces industrial machinery. Vargas has a machining department and a group of direct laborers called machinists. Each machinist is paid 25,000 and can machine up to 500 units per year. Vargas also hires supervisors to develop machine specification plans and to oversee production within the machining department. Given the planning and supervisory work, a supervisor can oversee three machinists, at most. Vargass accounting and production history reveal the following relationships between units produced and the costs of direct labor and supervision (measured on an annual basis): Required: 1. Prepare two graphs: one that illustrates the relationship between direct labor cost and units produced, and one that illustrates the relationship between the cost of supervision and units produced. Let cost be the vertical axis and units produced the horizontal axis. 2. How would you classify each cost? Why? 3. Suppose that the normal range of activity is between 2,400 and 2,450 units and that the exact number of machinists is currently hired to support this level of activity. Further suppose that production for the next year is expected to increase by an additional 400 units. How much will the cost of direct labor increase (and how will this increase be realized)? Cost of supervision?
- Service department charges In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of 64,560, and the Purchasing Department had expenses of 40,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records: A. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division. B. Using the cost driver information in (A), determine the annual amount of payroll and purchasing costs allocated to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. C. Why does the Residential Division have a larger support department allocation than the other two divisions, even though its sales are lower?Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.Sasha Company allocates the estimated $192,400 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows: Department Employees Accounting 4 Production 37 Sales 16 How much of the accounting department costs will be allocated to the production?
- Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period: Department Direct Expenses Square Feet Maintenance $ 49,500 21,000 Milling 92,500 42,000 Assembly 121,400 63,000 The total cost of operating the Assembly Department for the current period is: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 hourCordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 72,000 0.70 0.10 0.20 S2 $ 157,000 0.20 0.30 0.50 P1 $ 214,000 P2 $ 179,000 Under the step method of allocation, the total amount of service costs allocated to producing departments would be: Multiple Choice $174,000. $178,600. $74,000. $229,000.