Chapter 6: Assignment ModelName:Date:Score:Section Exercise 6.2, A manager has four jobs that must be assigned. Estimated processing times for each of fouremployeesminimize total processing time. What is the total processing time for the optimalare shown in the accompanying table. Determine a set of assignments that willassignments?EmployeeRichard Jeremie JenricoJobRodel119171618215181718318191619417141010Solution:Tableau 1Tableau 2EmployeeRowEmployeeJobJobReducerADAВD1'123344ColumnReducerTableau 4Tableau 3EmployeeDJobEmployeeDАCJobAВ11223344Decision:Processing TimeJob1Employee4TotalPage 241

Subract Minimum Element of each row from respecting row.The Resulting matrix is matrix after Row…

Answered: cision: Job Processing Time Employee 1…

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cision: Job Processing Time Employee 1 2 4 Total

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 21E: Refer to the data in Exercise 7.20. The company has decided to use the sequential method of...

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Required: 1. Allocate the HR costs to each producing department for Year 1 and Year 2 using the direct method with actual direct labor hours and actual HR costs. 2. Discuss the following statement: “The costs of human resource-related matters increased by 25 percent for Department A and decreased by over 16 percent for Department B. Thus, the manager of Department B must be controlling HR costs better than the manager of Department A.” Which of the four data analytic types—descriptive, diagnostic, predictive, or prescriptive—is used to determine how well the managers are controlling human resources costs. (See Exhibits 2.5 and 2.6, pp. 37, 40, for a review of data analytic types.) 3. Can you think of a way to allocate HR costs so that a more reasonable and fair assessment of cost control can be made? Explain
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?
Exercise 9-53 (Algo) Time-Driven ABC for an Administrative Service (LO 9-8, 9) The manager of the Personnel Department at City Enterprises has been reading about time-driven ABC and wants to apply it to her department. She has identified four basic activities her employees spend most of the their time on: Interviewing, Hiring, Assessment, and Separation Processing. The department employs 21 staff who perform these activities. The manager provides the following estimates for the amount of time it takes to complete each of these activities: Interviewing: 61 minutes. Hiring: 76 minutes. Assessment: 107 minutes. Separation Processing: 106 minutes. Employees in Personnel work 51-hour weeks with four weeks for vacation. Of the 51 hours, five are reserved for administrative tasks, training, and so on. The costs of the Personnel Department, including any allocated costs from other staff functions, are $988,000. During the year, Personnel conducted 2,800 interviews, made 695…
(Appendix 11A) Balanced Scorecard The following list gives a number of measures associated with the Balanced Scorecard: a. Number of new customers b. Percentage of customer complaints resolved with one contact c. Unit product cost d. Cost per distribution channel e. Suggestions per employee f. Warranty repair costs g. Consumer satisfaction (from surveys) h. Cycle time for solving a customer problem i. Strategic job coverage ratio j. On-time delivery percentage k. Percentage of revenues from new products Required: 1. Classify each performance measure as belonging to one of the following perspectives: financial, customer, internal business process, or learning and growth. 2. Suggest an additional measure for each of the four perspectives.
Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the costs of the support departments using the sequential method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
(Appendix 4B) Sequential Method of Support Department Cost Allocation Refer to Exercise 4-51 for data. Now assume that Stevenson uses the sequential method to allocate support department costs to the operating divisions. General Factory is allocated first in the sequential method for the company. Required: 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places.) 2. Allocate the support service costs to the operating divisions. (Note: Round all amounts to the nearest dollar.) 3. Assume divisional overhead rates are based on direct labor hours. Calculate the overhead rate for the Battery Division and for the Small Motors Division. (Note: Round overhead rates to the nearest cent.)
Refer to the data in Exercise 7.20. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the overhead costs to the producing departments using the sequential method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.) 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)
Cost Flows Consider the following independent jobs. Overhead is applied in Department 1 at the rate of 6 per direct labor hour. Overhead is applied in Department 2 at the rate of 8 per machine hour. Direct labor wages average 10 per hour in each department. Required: Fill in the missing data for each job.
Job order cost accounting for a service company Obj. 3 The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July: A. Provide the journal entries for each of these transactions. B. How much office overhead is over- or underapplied? C. Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $270,000 to $290,000?
Required information Skip to question [The following information applies to the questions displayed below.] The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the amount of service department cost allocated to P1 and P2 using the direct method?
1. Overhead application: Working backward The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review: Division A Division B Actual machine hours 26,500 ? Estimated machine hours 20,000 ? Overhead application rate $5.00 $6.00 Actual overhead $120,000 ? Estimated overhead ? $90,000 Applied overhead ? $87,000 Over- (under-) applied overhead ? $8,500 Find the unknowns for each of the divisions. 2. Computationsusing a job order system Spencer Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger; Work in process $ 36,200 Finished goods 86,900 Cost of goods sold 130,700 Work in Process consisted of two jobs, no. 101 ($22,400) and no. 103 ($13,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled…