Identify the items that are likely considered to be controlled by the New Car division.
Q: Cost allocation to divisions. Forber Bakery makes baked goods for grocery stores and has three…
A: The indirect costs are allocated to the divisions equally.
Q: Flounder Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and…
A: A responsibility report is a report which makes a comparison between the budgeted costs and actual…
Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…
A: Under first stage allocation of costs to activitiy cost pools means division of costs into various…
Q: Simon Blank Construction Company has two divisions. The president (Chris Simon) manages the roofing…
A: The primary objective of internal controls is to aid in the security and development of an…
Q: MedServices Inc. is divided into two operating departments: Laboratory and Tissue Pathology.The…
A: Answer 1) Direct Method: Under direct method, service department costs are allocated to production…
Q: Complete the first-stage allocations of costs to activity cost pools.
A:
Q: Middler Corporation, a manufacturer of electronics and communications systems, uses a service…
A: Formula: Cost per activity base=Budgeted costBudgeted Quantity
Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…
A: The cost given will be allocated on the basis of % given in the Question
Q: Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities…
A: SOLUTION- ACTIVITY BASED COSTING- IT IS A METHOD OF ALLOCATING INDIRECT COSTS TO UNIT PRODUCT…
Q: Middler Corporation, a manufacturer of electronics and communications systems, uses a service…
A: Activity Rate = Budgeted CostBudgeted Activity
Q: Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse…
A: Warehouse department cost will be distributed between remaining three departments in the ratio of…
Q: Required: Complete the first stage allocations of costs to activity cost pools.
A: Activity cost pool is the term under cost accounting in which the entire cost of the production is…
Q: Middler Corporation, a manufacturer of electronics and communications systems, uses a service…
A: The rate per activity is calculated as total budgeted cost divided by budgeted activity units.
Q: Ransom Manufacturing Company operates its three production departments within a single facility.…
A: Lease payment on Facility is not directly attributable to each production department. Therefore,…
Q: Best Practices, Inc., is a management consulting firm. Its Corporate Division advises private firms…
A: please like then answer your response matters 1) If the corporate division is operating at…
Q: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing…
A: Given : The following table lists the types of services and cost drivers for each service. The table…
Q: Fenster Corporation manufactures windows with wood and metal frames. Fenster has three departments:…
A: Transfer Price: This is a price which is charged by one sub-unit of an organization to another…
Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…
A: Formulae for the calculation:
Q: The Lin Company is decentralized, and divisions are considered investment centers. Lin has one…
A: The amount of sales minus the variable costs that were incurred for a production is treated as…
Q: Sembotix Company has several divisions including a Semiconductor Division that sells semiconductors…
A: Main objective of each and every department in the company is to minimize the cost (maximize profit)…
Q: Multiple Choice Allow evaluation of both divisions on a competitive basis. Demotivate the…
A: Code Incorporated has three divisions (Entertainment, Plastics, and Video Card), each of which is…
Q: Oxmoor Corporation has two service departments (Maintenance and Human Resources) and three…
A: Answer Under direct method of allocation, the costs of service departments, --are not allocated to…
Q: Company uses a responsibility reporting system. It has divisions in Denver, Seattle, and San Diego.…
A: Manufacturing overhead: It is the sum of all the indirect cost while manufacturing the product of…
Q: Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse…
A: Given: The service department with the highest percentage of interdepartmental support service is…
Q: Question 20
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse…
A: Under step down method, the service department cost is also allocated to other service departments.
Q: Middler Corporation, a manufacturer of electronics and communications systems, allocates Computing…
A: Solution:- a)Determination of the service allocation rate for the four CCS service categories for…
Q: Is Dave behaving unethically by trying to force the Semiconductor Division into a price break?…
A: To understand the mechanics of cost and profit, we first need to understand two different types of…
Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…
A: Solution:- Allocation of costs to activity cost pools as follows under:-
Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: Azzuma Printing Enterprise (APE) provides variety of printing services and binding works. The…
A:
Q: Compton Information Services, Inc., has two service departments: human resources and billing.…
A:
Q: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing…
A: Compute service allocation rate for each category of service for August as shown below: Allocation…
Q: Amiens Company manufactures both dry and semimoist dog food, with each type of dog food produced in…
A: The assignment of indirect expenses to manufactured commodities is known as overhead allocation. It…
Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…
A: The costs of different departments can be allocated to production on the basis of various methods,…
Q: Fenster Corporation manufactures windows with wood and metal frames. Fenster has three departments:…
A: Given information is: Fenster Corporation manufactures windows with wood and metal frames. Fenster…
Q: Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse…
A:
Q: Fenster Corporation manufactures windows with wood and metal frames. Fenster has three departments:…
A: Profit center: The profit center is that department in a company where profit is accounted and…
Q: (a) Calculate the total profit for each of the product groups: (i) using the current absorption…
A: Income statement: The income statement determines the net income of the business by subtracting the…
Q: Compton Information Services, Ic., has two service departments: human resources and billing.…
A: The cost of service department cost can be allocated to different operating departments on the basis…
Q: Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse…
A: Here allocation should be done on basis of computer hours
Q: udmilla Construction Company is composed of two divisions: (1) Home Construction and (2) Commercial…
A: Requirement of above question are answered below
Q: For each of the following organizational subunits, indicate the type of responsibility center that…
A: Responsibility center: It refers to that unit of the organization for which a separate executive is…
Q: Required: As an IT Auditor, identify the problems/weaknesses in the development of the new system…
A: Answer :- System Development Process: - System development process sometimes also known as system…
Q: SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los…
A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…
Car City is divided into three divisions: new car sales (NCS), used car sales (UCS), and parts and service (PAS). Each division is supervised by a division manager. The three division managers report to the general manager. Each division is subdivided into different departments managed by a department manager. For example, the PAS division has a parts department manager and a
| a | Allocated utility cost for NCS division |
| b | Cost to rent vacant lot for storage of new vehicles |
| c | Parts revenue for the PAS division |
| d |
Parts shipping/delivery costs |
| e |
Salary of the gerneral manager |
| f | Salary of the Parts department manager |
| g | Salary of the PAS division manager |
| h | Salary of the UCS division manger |
| I | Sales commisions of UCS sales personnel |
| J | Service revenue for the PAS division |
| k | Training costs for mechanics |
| L |
Warranty repair cost |
|
|
Required:
Identify the items that are likely considered to be controlled by the New Car division.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The Riverbed Brokerage firm is organized into two major sales divisions: institutional clients and retail clients. The firm also has two support departments: research and administration. The research department’s costs are allocated to the other departments based on a log of hours spent on tasks for each user. The administration department’s costs are allocated based on the number of employees in each department. Records are available for last period as follows: Support departments Operating departments Research Administration Institutional RetailPayroll costs $ 338,400 $ 289,700 $ 366,600 $ 585,200Other costs $ 231,370 $ 163,800 $ 112,830 $ 238,870Research hours 100 200 500 300Number of employees 7 10…The Mega Supply Corporation has three divisions: Commercial Products, Consumer Products, and Corporate Offices, which are located in Hatfield, South Carolina; Palo Alto, California; and Tulsa, Oklahoma, respectively. The Commercial Products division deals exclusively in sales of industrial products and supplies to business organizations. The Consumer Products division sells nonindustrial products to private consumers. Both divisions have dedicated inventory warehouses at their respective locations in Hatfield and Palo Alto. Because of the dissimilar nature of the commercial and consumer division product lines, they do not share customers or vendors. Currently Mega Supply uses a centralized database, which is located at their Corporate Division in Tulsa. Some relevant database tables and attributes are presented in the figure designated Problem 1. When customers contact their respective sales division, the sales clerk logs into the corporate database, checks credit, determines product availability, and creates a sales invoice. The corporate office typically bills the customer within 3 or 4 days and extends terms of net 30. Inventory control, AR processing, cash receipts, purchases from vendors and AP processing, and cash disbursements are performed by the corporate office. Due to Megas rapid growth, the company has seen a significant increase in sales and purchase transactions, which has resulted in excessive delays in processing transactions from the central database. Since customer service, including rapid response to customer inquiries and sales order processing, is a cornerstone of Megas business model, these delays are unacceptable. Required Mega wants to improve response time by distributing some parts of the corporate database while keeping other parts of it centralized. (A) Develop a schema for distributing Mega Supply Corporations database. Add new tables and attributes as needed but limit the schema to the tables needed to support sales, cash receipts, purchases/AP, and cash disbursements. In your schema, indicate whether tables are centralized, replicated, or partitioned. (B) Explain how the new system will operate.Simon Blank Construction Company has two divisions. The president (Chris Simon) manages the roofing division. Simon delegated authority and responsibility for management of the modular manufacturing division to John Gault. The company has a competent accounting staff and a full-time internal auditor. Unlike Simon’s procedures, however, Gault and his secretary handle all bids for manufacturing jobs, purchase all materials without competitive bids, control the physical inventory of materials, contract for shipping by truck, supervise the construction activity, bill the customer when the job is finished, approve all bid changes, and collect the payment from the customer. With Simon’s tacit approval, Gault has asked the internal auditor not to interfere with his busy schedule.Required:Discuss this situation in terms of internal control and identify frauds that could occur.
- Armada Shipping is a global logistics company. The company is organized into two divisions: Contracts and Retail. The Contracts Division, which is by far the larger division, handles customers who have regular shipping requirements and have signed contracts specifying costs and schedule for up to one year. The Retail Division handles shipments for customers who have only occasional shipping requirements and pay on an as-used basis. Billing for all customers is handled by the corporate Accounts Receivable Department. Accounts Receivable performs two major activities: billing and accounts. Billing refers to preparing and sending the bills as well as processing the payments. Accounts refers to establishing accounts, ensuring credit status, following up on collection, and so on. The costs of the Accounts Receivable Department are allocated to the two divisions based on the number of bills prepared. The manager of the Contracts Division has complained that the allocated costs from Accounts…Armada Shipping is a global logistics company. The company is organized into two divisions: Contracts and Retail. The Contracts Division, which is by far the larger division, handles customers who have regular shipping requirements and have signed contracts specifying costs and schedule for up to one year. The Retail Division handles shipments for customers who have only occasional shipping requirements and pay on an as-used basis. Billing for all customers is handled by the corporate Accounts Receivable Department. Accounts Receivable performs two major activities: billing and accounts. Billing refers to preparing and sending the bills as well as processing the payments. Accounts refers to establishing accounts, ensuring credit status, following up on collection, and so on. The costs of the Accounts Receivable Department are allocated to the two divisions based on the number of bills prepared. The manager of the Contracts Division has complained that the allocated costs from Accounts…Highland Publishing Company is a large organization offering a variety of printing and binding work. The Printing and Binding departments are supported by three service departments. The costs of these service departments are allocated to other departments in the order listed below. The Personnel cost is allocated based on number of employees. The Custodial Services cost is allocated based on square feet of space occupied and the Maintenance cost is allocated based on machine-hours. Department Total Labor-Hours Square Feet of Space Occupied Number of Employees Machine-Hours Direct Labor-Hours Personnel 16,400 12,600 27 Custodial Services 8,600 3,900 49 Maintenance 14,300 10,200 65 Printing 30,600 40,300 109 162,000 13,000 Binding 101,000 21,000 307 41,000 80,000 170,900 88,000 557 203,000 93,000 Budgeted overhead costs in each department for the current year are shown below: Personnel $ 320,000 Custodial Services 65,300 Maintenance 93,300…
- BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees — 25 15 60 Transactions 50,000 — 10,000 40,000 Department direct costs $ 61,000 $ 22,500 $ 155,000 $ 593,000 BluStar estimates that the cost structure in its operations is as follows. Administration Accounting Domestic International Variable costs $ 23,500 $ 5,200 $ 114,500 $ 425,000 Fixed costs 37,500 17,300 40,500 168,000 Total costs $ 61,000 $ 22,500 $ 155,000 $ 593,000 Avoidable fixed costs $ 9,750 $ 4,000 $ 18,000 $ 114,000 Required: a. If BluStar outsources the Administration Department, what is…Grael Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate costs for the year ended December 31, 20Y7, are as follows: Tech Support Department $336,000 Purchasing Department 67,500 Other corporate administrative costs 448,000 Total corporate costs $851,500 The other corporate administrative costs include officers’ salaries and miscellaneous smaller costs required by the corporation. The Tech Support Department allocates the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department allocates divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: Tech Support Purchasing Consumer Division 300 computers 1,800 purchase orders Commercial Division 180 2,700 Total 480 computers 4,500 purchase orders The service department allocations…Logan Products has two production departments—assembly and finishing. These are supported by two service departments—sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Total Labor Hours Used by Departments Sourcing Operations Assembly Finishing Sourcing - 20,000 40,000 60,000 Operations 10,000 - 60,000 50,000 The costs incurred in the plant are as follows: Departments Departmental Costs Sourcing $ 225,000 Operations 305,000 Assembly 450,000 Finishing 295,000 Total $ 1,275,000 Required: Use four decimal places (e.g., 33.3333%) in your calculation of percentages. 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage…
- Logan Products has two production departments—assembly and finishing. These are supported by two service departments—sourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Total Labor Hours Used by Departments Sourcing Operations Assembly Finishing Sourcing - 20,000 40,000 60,000 Operations 10,000 - 60,000 50,000 The costs incurred in the plant are as follows: Departments Departmental Costs Sourcing $ 171,000 Operations 215,000 Assembly 414,000 Finishing 259,000 Total $ 1,059,000 Required: Use four decimal places (e.g., 33.3333%) in your calculation of percentages. 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the sourcing department that provides the greatest percentage…Xerox Corporation has been an innovator in its responsibility-accounting system. In one initiative, management changed the responsibility-center orientation of its Logistics and Distribution Department from a cost center to a profit center. The department manages the inventories and provides other logistical services to the company’s Business Systems Group. Formerly, the manager of the Logistics and Distribution Department was held accountable for adherence to an operating expense budget. Now the department “sells” its services to the company’s other segments, and the department’s manager is evaluated partially on the basis of the department’s profit. Xerox Corporation’s management feels that the change has been beneficial. The change has resulted in more innovative thinking in the department and has moved decision making down to lower levels in the company. Required: Comment on the new responsibility-center designation for the Logistics and Distribution Department.Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows:
