Kay and Dee Manufacturing (K+D) has three business lines: • Manufacturing manufacturing of custom truck transmission parts • Chemical Treating: cleaning of old parts They also have four support departments. Major activities of each department are: • Human Resources (HR): Payroll, HR staff, employee services, Union/Management relations. Costs for this service department are allocated based on Headcount. Facility: buildings, building maintenance and related building costs. Costs for this service department are allocated based on area occupied. Main Office (HQ): salaries for the President, VP, and Finance department. Costs for this service department are allocated based on Direct Labour hours. . Repair and Overhead (R+O): Repair of truck transmissions. . . Information Technology (IT): IT costs for the entire organization, including servers. Each part of the organization has different IT needs. The biggest users are HR (for the payroll system) and Chemical Treatment (for a legacy system that runs all of the chemical processing equipment). Other financial information is in Appendix A.
Kay and Dee Manufacturing (K+D) has three business lines: • Manufacturing manufacturing of custom truck transmission parts • Chemical Treating: cleaning of old parts They also have four support departments. Major activities of each department are: • Human Resources (HR): Payroll, HR staff, employee services, Union/Management relations. Costs for this service department are allocated based on Headcount. Facility: buildings, building maintenance and related building costs. Costs for this service department are allocated based on area occupied. Main Office (HQ): salaries for the President, VP, and Finance department. Costs for this service department are allocated based on Direct Labour hours. . Repair and Overhead (R+O): Repair of truck transmissions. . . Information Technology (IT): IT costs for the entire organization, including servers. Each part of the organization has different IT needs. The biggest users are HR (for the payroll system) and Chemical Treatment (for a legacy system that runs all of the chemical processing equipment). Other financial information is in Appendix A.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...
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