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Q2: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. First apportioned center will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repair hour. The allocation keys of each item are as follows: Cost Production Departments Service Departments Centers/Costs Pasta Cutting Drying 18.000 Maintenance Total Gristmill Generator Infirmary Cafeteria & Repair Press 25.000| 17.000 36.000 Cost Direct Material 60.000 Direct Labor 27.000 17.000 80.000 Factory Overhead Indirect 3.000 2.700 5.800 9.000 4.866 8.000 33.366 Labor Utility Depreciation Total of Primary Distribution 5.000 4.800 3.900 4.100 2.400 1.500 21.700 Pasta Cutting Drying Maintenance Gristmill Generator Infirmary Cafeteria TOTAL & Repair 100 Press Machine hours 640 453 394 410 250 2.247 Number of 575 453 433 135 70 154 1.820 Workers M&R Hours kwh 264 400 350 160 120 80 1.374 450 500 600 400 350 225 2.525 Required: Do the, d re-distribute the cost of service cost centers. Present the allocation on the Cost Allocation Sheet.

Q2: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. First apportioned center will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repair hour. The allocation keys of each item are as follows: Cost Production Departments Service Departments Centers/Costs Pasta Cutting Drying 18.000 Maintenance Total Gristmill Generator Infirmary Cafeteria & Repair Press 25.000| 17.000 36.000 Cost Direct Material 60.000 Direct Labor 27.000 17.000 80.000 Factory Overhead Indirect 3.000 2.700 5.800 9.000 4.866 8.000 33.366 Labor Utility Depreciation Total of Primary Distribution 5.000 4.800 3.900 4.100 2.400 1.500 21.700 Pasta Cutting Drying Maintenance Gristmill Generator Infirmary Cafeteria TOTAL & Repair 100 Press Machine hours 640 453 394 410 250 2.247 Number of 575 453 433 135 70 154 1.820 Workers M&R Hours kwh 264 400 350 160 120 80 1.374 450 500 600 400 350 225 2.525 Required: Do the, d re-distribute the cost of service cost centers. Present the allocation on the Cost Allocation Sheet.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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Q2: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. First apportioned center will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repoir hour. The allocation keys of each item are as follows: Cost Production Departments Service Departments Centers/Costs Pasta Cutting Drying Maintenance Total Gristmill Generator Infirmary Cafeteria & Repair Press 17.000 Cost Direct Material 25.000 18.000 60.000 Direct Labor 36.000 27.000 17.000 80.000 Factory Overhead Indirect 3.000 2.700 5.800 9.000 4.866 8.000 33.366 Labor Utility Depreciation Total of Primary Distribution 5.000 4.800 3.900 4.100 2.400 1.500 21.700 Pasta Cutting Drying Maintenance Gristmill Generator Infirmary Cafeteria TOTAL & Repair 100 Press Machine hours 640 453 394 410 250 2.247 Number of 575 453 433 135 70 154 1.820 Workers M&R Hours kwh 264 400 350 600 160 120 80 1.374 450 500 400 350 225 2.525 Required: Do the, J re-distribute the cost of service cost centers. Present the allocation on the Cost Allocation Sheet.
Transcribed Image Text:Q2: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. First apportioned center will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repoir hour. The allocation keys of each item are as follows: Cost Production Departments Service Departments Centers/Costs Pasta Cutting Drying Maintenance Total Gristmill Generator Infirmary Cafeteria & Repair Press 17.000 Cost Direct Material 25.000 18.000 60.000 Direct Labor 36.000 27.000 17.000 80.000 Factory Overhead Indirect 3.000 2.700 5.800 9.000 4.866 8.000 33.366 Labor Utility Depreciation Total of Primary Distribution 5.000 4.800 3.900 4.100 2.400 1.500 21.700 Pasta Cutting Drying Maintenance Gristmill Generator Infirmary Cafeteria TOTAL & Repair 100 Press Machine hours 640 453 394 410 250 2.247 Number of 575 453 433 135 70 154 1.820 Workers M&R Hours kwh 264 400 350 600 160 120 80 1.374 450 500 400 350 225 2.525 Required: Do the, J re-distribute the cost of service cost centers. Present the allocation on the Cost Allocation Sheet.
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