Problem 8 Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) 15,000 Correspondence (letters) 10,000 Allocated Costs $60,000 0,000 Allocation Base 2,000 hours 20,000 liners 20,000 accounts 1,000 letters The above activities are used by departments P and Q P Department Q Account inquiry (hours) Account billing (lines) Account verification (accounts) 100 hours 10,000 lines 1,000 accounts 50 letters 200 hours 7,000 lines 600 accounts 100 letters 1) How much of the account verification costs will be assigned to Department P

Problem 8 Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) 15,000 Correspondence (letters) 10,000 Allocated Costs $60,000 0,000 Allocation Base 2,000 hours 20,000 liners 20,000 accounts 1,000 letters The above activities are used by departments P and Q P Department Q Account inquiry (hours) Account billing (lines) Account verification (accounts) 100 hours 10,000 lines 1,000 accounts 50 letters 200 hours 7,000 lines 600 accounts 100 letters 1) How much of the account verification costs will be assigned to Department P

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 14.1.1P: Budget performance report for a cost center Sneed Industries Company sells vehicle parts to...

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Budget performance report for a cost center Sneed Industries Company sells vehicle parts to manufacturers of heavy construction equipment. The Crane Division is organized as a cost center. The budget for the Crane Division for the month ended August 31, 20Y6, is as follows (in thousands): During August, the costs incurred in the Crane Division were as follows: Instructions Prepare a budget performance report for the director of the Crane Division for the month of August.
QUESTION 29 A company has two service departments (S1 and S2) and two user departments (U1 and U2). The following information is available: Service Department Cost Cost Allocation Base Amount of service used by S1 S2 User Department, U1 User Department, U2 S1 $160,000 Number of Service Calls (SC) – 25 SC 60 SC 15 SC S2 $200,000 Computer hours (CH) 2,000 CH – 3,000 CH 5,000 CH Based on the direct method, how much of the service department costs will be allocated to U1? A. $156,000 B. $203,000 C. $186,000 D. $171,000
questoin 9 chapter 4 Assume a company provided the following information: Service Departments Operating Departments Cafeteria Janitorial Lab Tech Departmental costs $ 180,000 $ 140,000 $ 232,000 $ 950,000 Number of employees 10 20 40 60 Square feet of space occupied 3,000 2,000 11,000 9,000 If the company (1) uses the step-down method (beginning with the Cafeteria) to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Cafeteria Department to the Lab Department is closest to: Multiple Choice $60,000. $54,871. $73,333. $113,333.
ervice Department Charges The centralized computer technology department of Hardy Company has expenses of $372,600. The department has provided a total of 13,800 hours of service for the period. The Retail Division has used 6,762 hours of computer technology service during the period, and the Commercial Division has used 7,038 hours of computer technology service. How much should each division be charged for computer technology department services? Do not round interim calculations. Retail Division $fill in the blank 1 Commercial Division $fill in the blank 2
22. Question Content Area Support Department Allocations The centralized computer technology department of Hardy Company has expenses of $28,000. The department has provided a total of 2,000 hours of service for the period. The Retail Division has used 1,620 hours of computer technology service during the period, and the Commercial Division has used 380 hours of computer technology service. How much should each division be allocated for computer technology department services? Do not round interim calculations. Retail Division $ Commercial Division $
Exercise 22-5 Departmental expense allocations LO P2 Woh Che Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent month, the four departments incurred three shared indirect expenses. The amounts of these indirect expenses and the bases used to allocate them follow. Indirect Expense Cost Allocation Base Supervision $ 82,500 Number of employees Utilities 50,000 Square feet occupied Insurance 22,500 Value of assets in use Total $ 155,000 Departmental data for the company’s recent reporting period follow. Department Employees Square Feet Asset Values Materials 27 25,000 $ 6,000 Personnel 9 5,000 1,200 Manufacturing 63 55,000 37,800 Packaging 51 15,000 15,000 Total 150 100,000 $ 60,000 1. Use this information to allocate each of the three indirect expenses across the four departments.2. Prepare a summary table that…
Guna publishing company has three service departments & two operating departments. Selected data from a recent period on the five departments follow. Service Departments Operating Departments Total A B C 1 2 Overhead costs 140,000 105,000 48,000 275,000 430,000 998,000 Number of employees 60 35 140 315 210 760 Space occupied 15,000 10,000 20,000 40,000 100,000 185,000 Hours of press time - - - 30,000 60,000 90,000 The company allocated service department costs by the step method in the following order. A(number of employees). (B/space occupied), & C( hours of press time ) . The company makes no distinction between variable & fixed service department costs. Required Assuming that the company used the direct method, how much overhead cost would be allocated to each operating department? using the step method, allocate the service department costs to the…
8. Lisa's Automotive Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows: Maintenance Dept. Personnel Dept. Production Dept. A Production Dept. B Standard service hours used 200 200 240 160 Number of employees 10 20 40 120 How much of the cost of the Maintenance Department is allocated to Department B using the direct method? Select one: a. $60,000 b. $32,000 c. $12,800 d. $24,000 e. $16,000
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 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…
The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Service Department Operating Department A B C 1 2 Total Overhead costs £ 100,000 £ 115,000 £ 73,000 £ 266,500 £ 289,000 £ 843,500 Number of employees 57 33 132 297 198 717 Square feet of space occupied 12,600 7,100 21,000 42,000 105,000 187,700 Hours of press time 34,000 68,000 102,000 The company allocates service department costs by the step method in the following order: A (number of employees), B (space occupied), and C (hours of press time). The company makes no distinction between variable and fixed service department costs. Required: Using the step method, allocate the service department costs to the operating departments. (Do not round intermediate calculations. Amounts to be deducted…
Exercise 9-51 (Algo) Activity-Based Costing for an Administrative Service (LO 9-5, 8) John’s Custom Computer Shop (JCCS) assembles computers for both individual and corporate customers. The company is organized into two divisions: Personal and Business. Once a computer is built, it is shipped to the customer. Billing for all customers is handled by the corporate Accounts Receivable Department. Accounts Receivable performs two major activities: billing and dispute resolution. Billing refers to preparing and sending the bills as well as processing the payments. Dispute resolution occurs when a customer refuses to pay, usually due to an error in billing. The costs of the Accounts Receivable Department are allocated to the two divisions based on the number of bills prepared. Kyle, the manager of the Business division, has complained that the allocated costs from Accounts Receivable are beginning to make the business division look unprofitable and has asked you to recommend some changes…