Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information: Janitorial Department Usage 50% Cafeteria 10% Cutting 40% Assembly Cafeteria Department Usage 20% Janitorial 60% Cutting 20% Assembly Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000. What are the correct equations to represent (a) the total Janitorial (J) costs, (b) the total Cafeteria (C) costs, and (c) the rewritten equation substituting C into J? % x a. J = $ % x b. C = $ % x % x [$ c. J = $

Q: Casas Corporation has two service departments, Personnel and Cafeteria, and two operatıng…

A: Under stepdown method of cost allocation, indirect costs or overheads are allocated by allocating…

Q: A local picnic table manufacturer has budgeted these overhead costs: Purchasing $77,000 Handling…

A: In this question , we will find out the total order cost:

Q: Cheyenne, Inc. produces three products from a common input. The joint costs for a typical quarter…

A: It is pertinent to note that gross profit is the residual amount that is obtained by reducing the…

Q: A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling…

A: Calculation of job cost with all necessary workings are as follows.

Q: Jamison Company uses the reciprocal services method to allocate support department costs and has…

A: Under reciprocal method, services provided by one service department to other service department is…

Q: Jasmine Gonazles, Administrative Director of Small Imaging Center, has been asked by the practice…

A:

Q: Bartolo Delivery has two divisions, air express and ground service, that share the common costs of…

A: a. Allocation rate = Total commumication network cost/Total number of calls                      =…

Q: Bartolo Delivery has two divisions, air express and ground service, that share the common costs of…

A: Total cost = $8,100,000 Fixed cost =$5,670,000 Variable cost =$2,430,000

Q: A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling…

A: Budgeted Overhead: The quantum of upward expense that is planned to be caused during a period of…

Q: Bartolo Delivery has two divisions, air express and ground service, that share the common costs of…

A: Allocation basis is a method which is use to determine the cost accounting allocated to overhead…

Q: Your Division makes a part that can either be sold to outside customers or transferred internally to…

A: As per the general transfer pricing rule, in the case of sufficient capacity available, the minimum…

Q: The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division.…

A: Net income is the income earned by the company. It is presented in the income statement of the…

Q: Bryant Company uses the reciprocal services method to allocate support department costs and has…

A: In the Reciprocal method cost of each service department  is allocated to other service departments

Q: The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet.She…

A: VARIABLE COST ALL LOCATION= 1.76  SALE PRICE ALL LOCATION= 2.65 RENT: A= 5000 B= 5500 C=5800

Q: Benitez Company currently outsources a relay switch that is a component in one of its products. The…

A: A make-or-buy decision refers to an act of using cost-benefit to make a strategic choice between…

Q: Use the information below to answer the two questions that follow. A company has two service…

A: Direct Method: Under direct method, service department costs are allocated to production departments…

Q: Combate Corp. manufactures ice creams: magnum and cornetto. The following are the information for…

A:

Q: The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two…

A: Formulas:

Q: Evans Inc. has the following two activities: (1) Reworking products, cost: $740,000. The reworking…

A: Non Value added costs are the cost which will add to the total product cost but does not increase…

Q: DORY Company has two support departments (Power and Maintenance) and two producing departments…

A: Since  service department overhead cost directly allocated to producing deparments without…

Q: A local picnic table manufacturer has budgeted these overhead costs - ERROR: "Handling materials" is…

A: Overhead Assigned Rate: Overhead costs are allocated by spreading or assigning the overhead costs…

Q: Jamison Company uses the reciprocal services method to allocate support department costs and has…

A: Solution:- Calculation of the total Janitorial Department cost using the reciprocal services method…

Q: Saira Frozen Foods, Inc., produces frozen pizzas. For next year, Saira predicts that 50,000 units…

A: The required calculations are metrics of cost sheet. The calculation is shown in next step

Q: PQR Ltd. has its own power plant, which has two users, Cutting Department and Welding Department.…

A: The question is related to Allocation of overheads on the basis of budgeted machines hours. The…

Q: Palace Company has two service departments and two user departments. The number of employees in each…

A: Total employees=Cafeteria+Dept. A+Dept. B=25+290+255=570

Q: The Molding Division of Cotwold Company manufactures a plastic casing used by the Assembly Division.…

A: Transfer pricing methodology is used for setting prices at which products can be transferred from…

Q: Triton Company's copy department, which does almost all of the photocopying for the sales department…

A: Total Fixed Cost to be allocated= 95,000+10,000 +10,000+ 5,000   =120,000   Variable Cost Per UNIT…

Q: Pet Products Inc. manufactures two products, cat bowls and dog bowls, from a joint process. Cat…

A: The operating income is calculated as excess of sales revenue over total cost spent.

Q: Republic Industries decides to price delivery services according to the results of a recent…

A: Total delivery cost charged = (No. of orders x $10) + (No. of deliveries x $35) + (Total no. of…

Q: Departmental information for the four departments at Samoa Industries is provided below.   Total…

A: Allocation of overheads: Allocation of overheads means to allocate the whole cost item into the cost…

Q: Sunshine Company sells custom made surf boards in California. The finance manager has supplied the…

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

Q: Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its…

A: A type of accounting process that aims to capture a company's costs of production by assessing the…

Q: A local picnic table manufacturer has budgeted these overhead costs: Purchasing $63,000 Handling…

A: Activity-based costing (ABC) analysis can be defined as a method of assigning overhead costs on the…

Q: The Merchant Manufacturing Company has two service departments — purchasing and maintenance, and two…

A: Under step down allocation method one service department (usually with the highest cost) allocates…

Q: Marvin’s Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent…

A: a.   City Diner Le Chien Chaud Delivery charge $88,000 x 10% $98,000 x 10%   $8,800 $9,800

Q: Your Company uses activity-based costing and has estimated its costs for next year in the table…

A: The activity based costing is used to apply the overheads to the production on the basis of…

Q: The housekeeping services department of Ruger Clinic, a multispecialty practice had $100,000 in…

A: Given: Direct cost is $100,000  Patient revenue is $5,000,000 Total hours is $5,000 Adult service…

Q: Eilers Company has two producing departments and two support departments. The following budgeted…

A: Overheads are all type of indirect costs related with the production and manufacturing of the…

Q: Bartolo Delivery has two divisions, air express and ground service, that share the common costs of…

A: Overheads are considered as fixed and common expenses that should be allocated to the products on…

Q: A local picnic table manufacturer has budgeted these overhead costs: Purchasing $80,000 Handling…

A: The overhead rate is calculated as total cost divided by the activity usage units.

Q: Pet Products Inc. manufactures two products, cat bowls and dog bowls, from a joint process. Cat…

A: Costs that are not attributable to a single product are called joint cost.

Q: abor cost $ 7   Unit-level overhead $ 6   Batch-level set-up cost (4,000 units per batch) $ 30,000…

A: To calculate whether the cost of making the parts is higher than purchasing , relevant making cost…

Q: Parker Company has two service departments—cafeteria and engineering—and two operating departments.…

A: Since cost of cafeteria is allocated to other departments, Total number of employees in remaining…

Q: United printers run a business of developing and printing T-shirts. The current costs of developing…

A: In making or buying decision, only the relevant costs are considered for manufacturing the product…

Q: Senen corporation has two service departments (maintenance and security) and two producing…

A: Allocation of Maintenance overhead to security = Total Maintenance overhead x 10% = 900000 x 10% =…

Q: Arrow Products typically earns a contribution margin ratio of 25 percent and has current fixed costs…

A: Contribution margin is the excess of sales over variable cost. It is the part of sales revenue which…

Q: Triton Company's copy department, which does almost all of the photocopying for the sales department…

A: Allocation of Copy department costs to sales department is $ 5,566,500  Refer step 2 for explanation

Q: Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent…

A: a) Calculation of delivery charges is as follows: Resultant table:

Q: f Cafeteria costs are budgeted at R69 375, the amount of cost allocated to Operating Department 2…

A: Given costs of the Cafeteria are allocated to other departments on the basis of number of employees…

Q: Triple X Company manufactures and sells refrigerators. It makes some of the parts for the…

A: Cost of parts = Number of units required each year ×Cost per unit                        =…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.