Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 122,000 0 % 40 % 40 % 20 % Service 2 (S2) 54,000 25 0 25 50 Production 1 (P1) 445,000 Production 2 (P2) 316,000 Total $ 937,000 What percentage of S1’s costs is allocated to P1 and to P2 under the direct method?
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Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 122,000 0 % 40 % 40 % 20 % Service 2 (S2) 54,000 25 0 25 50 Production 1 (P1) 445,000 Production 2 (P2) 316,000 Total $ 937,000 What percentage of S1’s costs is allocated to P1 and to P2 under the direct method?
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- Cost Direct Center Cost Proportion of Services used by: S1 S2 S3 P1 P2 P3 S1 P120,000 .10 .30 .25 .20 .15 S2 80,000 .20 .40 .20 .20 S3 45,000 .60 .35 .05 P1 78,000 P2 99,000 P3 45,000 __________26. Under the step method which department will allocate its direct cost first? __________27. Under the step method which department will allocate its direct cost last? __________28. Using the algebraic method, how much is the total costs to be allocated by S1 to all departments? __________29. Using algebraic method, how…Use the following information: Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 118,000 0% 45% 35% 20% Service 2 (S2) 50,000 20 0 20 60 Production 1 (P1) 405,000 Production 2 (P2) 276,000 Total $ 849,000 a. What percentage of S1’s costs is allocated to P1 and to P2 under the direct method? (Round your answer to the nearest fraction.) b. What percentage of S2’s costs is allocated to P1 and to P2 under the direct method? (Round your answer to the nearest fraction.) Question 2. The following information relates to a joint production process for three products, with a total joint production cost of $175,000. There are no separable processing costs for any of the three products. Product Sales Value at Split-Off Units at Split-Off 1 $ 227,500 680 2 87,500 1,020 3 35,000 1,700 $ 350,000 3,400 a. What percentage of joint cost is allocated to each of the three products using the…Q # 1: The income statement for the Stylo Company for the past year is: Sales (150000 units @ $30) $4,500,000 Cost of Goods Sold: Materials $1,050,000 Labour 1,500,000 Variable FOH 450,000 Fixed FOH 500,000 3,500,000 Gross Profit $1,000,000 Variable Marketing Expenses $ 135,000 Fixed Marketing Expenses 185,000 Fixed Administrative Expenses 180,000 500,000 Income before Tax $ 500,000 Income Tax 250,000 Net Inco me $ 250,000 Woodstock is preparing its budget for the coming year and has made the following predictions about cost increases: material 5%, labour 8%, all other costs including fixed 6%. Productive capacity is 200,000 units. The president has been offered various proposals by the division managers as follows: Maintain the present volume and sales price Produce and sell at capacity and reduce the unit price $28. Raise the unit price to $32,…
- Q7. c) Contribution statement for komfwe dry cleaning Ltd Product A(ZMW) Product B(ZMW) Unit budgeted 1000 1000 Sales 1000 500 Variable costs 600 300 Contribution 400 200 Fixed costs 200 200 Profit 100 - Calculate i) Break-even point for each product ii) Contribution ratio for each product iii) Can you close product B and why? Explain“Product S M V Total Percentage of total sales 48% 20% 32% 100% Sales £480,000 100% £200,000 100% £320,000 100% £1,000,000 100% Variable expenses £144,000 30% £160,000 80% £176,000 55% £480,000 48% Contribution margin £336,000 70% £40,000 20% £144,000 45% £520,000 52% Fixed expenses £223,600 Net operating income £296,400” “Assume that actual sales for the month total £1,000,000 as planned. Actual sales by product are: S, £320,000; M, £400,000; and V, £280,000.” “Required:” “Prepare a contribution format income statement for the month based on actual sales data. Present the income statement in the format shown above.” “Compute the break-even point for the month, based on the planned and your actual data.”Q.5) Compute: i) Prime Cost ii) Factory CostMaterial = Rs. 75,000 ( 80% Direct )Labour = 100,000 ( 20 % Indirect )Conversion Cost = 180,000 (Indirect Material and Labour are included) Q.7) Compute: i) Direct Labour ii) Conversion Cost Factory Cost = Rs. 500,000Prime Cost = three-fifth of the Factory Cost.Direct Material = one-fifth of the Factory Cost.
- Q22 Washington Arts allocates marketing and administrative costs to its three schools based on total annual tuition revenue for the schools: School Longview Campus Springhill Campus Center Saint Campus Total Tuition revenue $ 1,400,000 $ 1,200,000 $ 1,400,000 $ 4,000,000 Marketing and administrative $ 1,600,000 Using revenue as an allocation base, the amount of costs allocated to the Springhill Campus is calculated to be: Multiple Choice $640,000. $560,000. $400,000. $480,000. $760,000.19. How much is the total distribution (selling) costs? a. 48,000 b. 56,000 C. 64,000 d. 108,000 20. How much is the total administrative expenses? a. 24,000 b. 132,000 C. 226,000 d. 668,000Problem 22-4A Departmental contribution to income LO P3 Vortex Company operates a retail store with two departments. Information about those departments follows. Department A Department B Sales $ 800,000 $ 450,000 Cost of goods sold 497,000 291,000 Direct expenses: Salaries 125,000 88,000 Insurance 20,000 10,000 Utilities 24,000 14,000 Depreciation 21,000 12,000 Maintenance 7,000 5,000 The company also incurred the following indirect costs. Salaries $36,000 Insurance 6,000 Depreciation 15,000 Office expenses 50,000 Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows. Department Square footage Number of employees A 28,000 75 B 12,000 50 Required:1.…
- Aj.2 Required information Skip to question [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 100,000 Variable expenses 65,000 Contribution margin 35,000 Fixed expenses 30,100 Net operating income $ 4,900 5. If sales decline to 900 units, what would be the net operating income? Note: Round "Per Unit" calculations to 2 decimal places.QS 22-11 Performance measures LO A1, A2 Investment Center A B Sales $ ? $ 10,400,000 Net income $ 352,000 $ ? Average invested assets $ 1,400,000 $ ? Profit margin 8 % ? % Investment turnover ? 1.5 Return on investment ? % 12 % Use the information in the table above to compute each department’s contribution to overhead (both in dollars and as a percent). (Round your final answers to 2 decimal places.)Part 2QUESTION 1Oceania Ltd makes three models of tasers. Information on the three products is given below: Spotter Snooker Stunner Sales $ 300,000 $ 500,000 $ 200, 000 Variable expenses 150,000 200,000 145,000 Contribution margin 150,000 300,000 55,000 Fixed expenses 120,000 230,000 95,000 Net income $ 30,000 $ 70,000 $ ( 40,000)4Fixed expenses consist of $ 300,000 of common costs allocated to the three products based on relative sales and additional fixed expenses of $30,000 (spotter), $ 80,000 (Snooker) and $ 35,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The other expenses would be eliminated if a model is phased out. The managing director of the company feels the Stunner line should be discontinued to increase the company’s net income.Requirements:a) Compute current net income for Oceania Ltd. b) Compute net income by product line and in total for Oceania Ltd if the company discontinues the Stunner product line. (Hint: Allocate the…