Q.3.2 Puppy Manufacturers is a dog clothing company with four departments - small clothing, large clothing, administrative services and facilities services. The first two departments are the primary production departments and the latter two departments exist to provide services to the production departments. Top management has decided that, for internal reporting purposes, the cost of service department operations should be reassigned to the production departments. Administrative service costs are reassigned on the basis of the number of employees and facilities services costs are reassigned based on the amount of floor metreage occupied. The service departments provide services to both production departments as well as each other. Data pertaining to the reassignments for February 2019 are as follows: Department Direct Nr of Square metreage departmental costs employees occupied Small clothing (SC) R350 000 175 Large clothing (LC) R300 000 125 Administrative R100 000 25 services Facilities R50 000 5 Total R800 000 30 330 Required: Determine the total amount of costs to be allocated to each of the production departments under the direct method. Round all answers to the nearest Rand value. 15 10 4 1

Q.3.2 Puppy Manufacturers is a dog clothing company with four departments - small clothing, large clothing, administrative services and facilities services. The first two departments are the primary production departments and the latter two departments exist to provide services to the production departments. Top management has decided that, for internal reporting purposes, the cost of service department operations should be reassigned to the production departments. Administrative service costs are reassigned on the basis of the number of employees and facilities services costs are reassigned based on the amount of floor metreage occupied. The service departments provide services to both production departments as well as each other. Data pertaining to the reassignments for February 2019 are as follows: Department Direct Nr of Square metreage departmental costs employees occupied Small clothing (SC) R350 000 175 Large clothing (LC) R300 000 125 Administrative R100 000 25 services Facilities R50 000 5 Total R800 000 30 330 Required: Determine the total amount of costs to be allocated to each of the production departments under the direct method. Round all answers to the nearest Rand value. 15 10 4 1

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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A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.
Use the following information for Brief Exercises 4-27 and 4-28: Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Brief Exercises 4-27 (Appendix 4B) Assigning Support Department Costs by Using the Direct Method Refer to the information for Quillen Company above. Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratiosone for Cutting and the other for Sewing.) 2. Allocate the support department costs to the producing departments by using the direct method.
Refer to Cornerstone Exercise 7.3. Now assume that Valron Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. 2. Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. (Round all allocated costs to the nearest dollar.) 3. What if the allocation ratios in Requirement 1 were rounded to six significant digits rather than four? How would that affect any rounding error in the allocation of costs?
Refer to the data in Exercise 7.22. The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the support departments to the producing departments using the direct method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department’s efforts (in percentages) to the other departments is: From To S1 S2 P1 P2 S1 — 10% 20% ?% S2 10% — ? 30 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 180,000 S2 60,000 P1 50,000 P2 120,000 Required: 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method.
Cost Accounting 2 Case StudyThe Effect of Standards on Product and Service QualitySetting standards in an organization may be primarily to assist in the calculation of a standard cost for the product or service for management accounting purposes. Standards are also relevant for operational and customer service managers as they may affect the manufacture of the product or the quality of the service. Take McDonald's, Burger King or Coca-Cola for example. All three companies produce products that adhere to standard ingredients, albeit with some minimal regional variation. A BigMac or Whopper, for example, will contain a beef pattie that is manufactured to an exact uncooked weight. Similarly, every bottle of Coca-Cola will contain a similar amount of cola concentrate. As the ingredients are standardized according to 'recipes', a standard cost can be readily calculated and used for cost control and performance reporting. Perhaps more importantly, the customer is confident of getting a…
(Ch 8) Which departments in an organization produce services for external customers? Question 1 options: Support departments. Dual-rate departments. Operating departments. Sales departments. (Ch 8) When allocating support department costs, managers must identify cost pools. The choice of cost pools is: Question 2 options: not influenced by the allocation base. not important, because all support department costs will eventually be allocated anyway. influenced by the design of the accounting information system. determined by whether a company uses IFRS or ASPE.
In each blank next to the following terms, place the identifying letter of its best description. 1. Cost center 2. Profit center 3. Responsibility accounting system 4. Service department 5. Indirect expenses 6. Controllable costs A. Incurs costs without directly yielding revenues. B. Provides information used to evaluate the performance of a department. C. Does not directly manufacture products but contributes to profitability of the entire company. D. Costs incurred for the joint benefit of more than one department. E. Costs that a manager has the ability to affect. F. Incurs costs and also generates revenues.
Riemer, Incorporated has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department. (Do not round your intermediate computations.) Department Direct Expenses Square Feet Employees Maintenance $ 18,000 900 10 Cutting 21,000 1,400 10 Assembly 61,000 2,400 10 Packaging 2,400 3,400 10
Smokey & the Bandit Corporation has three production departments Alpha, Beta, and Gamma. Smokey & the Bandit also has two service departments, Human Resources and Technology. Technology costs are allocated based on value of assets employed, and Human Resources costs are allocated based on number of employees. Assume that Technology provides more service to the other departments than does the Human Resources Department. Dept. Direct Costs Employees Asset Value Technology $900,000 25 Human Resources 350,000 $600,000 Alph 700,000 15 300,000 Beta 200,000 5 150,000 Gamma 250,000 10 800,000 Using the direct method, what amount of Human Resources costs is allocated to Alpha (round to the nearest dollar)? Group of answer choices $95.455 $350,000 $175,000 $450,000 The Frugal Bandit uses a standard cost system and applied overhead based on direct labor hours. In March, the company produced 4,500 units…
4. S1: In activity-based costing, all manufacturing costs must be included in product costs. S2: The first-stage allocation in activity-based costing is the process by which overhead costs are assigned to activity cost pools. Both statements are correct. Only S1 is correct. Only S2 is correct. Both statements are incorrect. 5. [S1] Traditional management involves focusing on the resources and capabilities of the firm to minimize costs and maximize production. [S2] Modern strategic management concepts focus more on changes in the external environment and how business entities can adapt to these changes. Both statements are correct. Both statements are incorrect. Only S1 is correct. Only S2 is correct. 6. There is a high level of turnover among the sales representatives of the firm. Which of the following would be appropriate for this concern? Consult with the human resource department and review hiring qualifications, interview questions and applicant values trend. Analyze service…
determine if a profit center manager of a division of a picture frame manufacturer had control over each of the following costs and expenses: 1. cost of materials used for the division's production development 2. sales goals for the divisions top selling product 3. cost of employees hourly wage in the department answers- a. yes yes yes b. yes no yes c. no no yes d. yes yes no e. no yes no f. no no no