im not sure what im doing wrong do not provide solutoion in image format thank you! Human ResourcesGeneral FactoryHuman Resources(HR)General Factory (GF)Direct costsAllocate:Human ResourcesHuman ResourcesOVGeneral Factory0.05Total after allocation2. Develop a simultaneous equations system of total costs for the support departments. If required, round your answers to four decimal places. Use these numbers forsubsequent calculations. If required, round all other intermediate calculations to six decimal places, except the answers computed in requirement 1.17,000 X (GF)160,000✔Proportion of Driver Used byFabricatingGeneral Factory0350,000 V(HR)Solve for the total reciprocated costs of each support department. (Round reciprocated total costs to the nearest dollar)Human Resources (HR)General Factory (GF)-160,000 XOXox0✔0X3. Using the reciprocal method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. Round all allocatedcosts to the nearest dollar. If an amount is zero, enter "0". Note: There may be a "$1" difference due to intermediate rounding.Support DepartmentsProducing DepartmentsHuman Resources General Factory160,000✔350,000✔0X0.2667 X0.285 ✔-340,000 X0XAssemblyFabricating0.5667 X0.665 ✔114,800 ✓30,618 X32,718 X183,933 XAssembly95,000 ✓53,837 X63,175 X222,775 Reciprocal Method of Support Department Cost AllocationValron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.Direct costsNormal activity:Required:Support Departments Producing DepartmentsHuman GeneralResources Factory Fabricating Assembly$160,000 $350,000$95,000Number of employeesSquare footage1,0005,70013,300The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footageNow assume that Vairon Company uses the reciprocal method to allocate support department costs.Human ResourcesGeneral Factory$114,80060Human Resourceso✓0.05 ✔1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "0". Use the rounded valuesfor subsequent calculations.80General Factory170Proportion of Driver Used byFabricatingox0✔0.26670.285Assembly0.5667 X0.665✓

The reciprocal method of allocating the cost of supporting division of the business needs to be…

Reciprocal Method of Support Department Cost Allocation Vatron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Required: Support Departments Producing Departments Human General Resources Factory Fabricating Assembly $160,000 $350,000 $114,800 Number of employees 170 Square footage 1,000 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footagen Now assume that Vairon Company uses the reciprocal method to allocate support department costs. Human Resources General Factory Human Resources 60 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "0". Use the rounded valuem for subsequent calculations. 0.05 $95,000 80 General Factory Proportion of Driver Used by Fabricating ox O✓ 0.2667 X 0.285 ✔ Assembly 0.5667 X 0.665

Reciprocal Method of Support Department Cost Allocation Vatron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Direct costs Normal activity: Required: Support Departments Producing Departments Human General Resources Factory Fabricating Assembly $160,000 $350,000 $114,800 Number of employees 170 Square footage 1,000 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footagen Now assume that Vairon Company uses the reciprocal method to allocate support department costs. Human Resources General Factory Human Resources 60 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the reciprocal method. If an amount is zero, enter "0". Use the rounded valuem for subsequent calculations. 0.05 $95,000 80 General Factory Proportion of Driver Used by Fabricating ox O✓ 0.2667 X 0.285 ✔ Assembly 0.5667 X 0.665

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 4P: Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2....

See similar textbooks

Similar questions

Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Esployees Department direct costs a. The order of allocation starts with IT. b. The order of allocation starts with HR. Show Transcribed Text IT From: Service department costs IT 0 HR Total costs 16 $ 156,000 Required: Use the step method to allocate the service costs, using the following: $ HR 1,700 0 $ 266,200 Complete this question by entering your answers in the tabs below. Publishing 1,700 24 Required A Required B Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be…
Using the data in P4-2 and Microsoft Excel: 1. Separate the variable and fixed elements. 2. Determine the cost to be charged to the product for the year. 3. Determine the cost to be charged to factory overhead for the year. 4. Determine the plotted data points using Chart Wizard. 5. Determine R2. 6. How do these solutions compare to the solutions in P4-2 and P4-3? 7. What does R2 tell you about this cost model?
Smoky Mountain Corporation makes two types of hiking boots-the Xtreme and the Pathfinder. Data concerning these two product lines appear below: Xtreme $ 121.00 $ 64.70 $ 10.80 Pathfinder Selling price per unit Direct materials per unit Direct labor per unit Direct labor-hours per unit Estimated annual production and sales $ 88.00 $ 54.00 %24 9.00 1.0 DLHS 71,000 units 1.2 DLHS 25, 000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labor-hours $ 2,020,000 101,000 DLH5 Required: 1. Compute the product margins for the Xtreme and the Pathfinder products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing…
Q3. ADLG Company has two support departments, SS1 and SS2, and two operating departments, OD1 and OD2. The company has decided to use the direct method and allocate variable SS1 dept. costs based on the number of transactions and fixed SS1 dept. costs based on the number of employees. SS2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers. The following values have been extracted for the allocation | Total Department variable costs Total department fixed costs Number of transactions Number of employees Number of service requests Number of computers Support Departments SS1 16,000 19,500 50 18 37 20 SS2 19,000 34,000 You are required to allocate variable and fixed costs. 55 24 22 25 Operating Departments OD1 105,000 120,000 250 47 26 31 OD2 68,000 55,000 140 38 32 37
Whispering's Market United (WMU) is an umbrella organization for all individuals who are go-getters in home-grown produce, homemade jams/jellies, artisan breads, and other hand-crafted items to be sold on local street corners. It represents a proud group of folks who are trying to keep the small producer and the health-conscious consumer top-of-mind when it comes to filling the refrigerator and pantry. As a large organization that provides a variety of services for its regional member clubs, WMU continually strives to better understand its own profitability. WMU has four key support services to assist its members: Member Services, Social Media, Resource Deployment, and Administrative Services. These four support departments exist for the benefit of the three operating segments, which are organized geographically: East, Central, and West. While the support services primarily assist the operating segments, they also cross over and assist each other. The services offered by the support…
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $138,000 Number of setups 120 Ordering materials 21,600 Number of orders 1,200 Machining 107,100 Machine hours 11,900 Receiving 16,740 Receiving hours 930 Silven produces two models of cell phones with the following expected activity demands: Model X 4,600 80 400 Units completed Number of setups Number of orders Machine hours Receiving hours Required: 6,800 310 Model X Model Y Model Y 9,200 40 800 5,100 620 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned
1. Describe the key features of the reciprocal method. 2. Allocate the support departments' costs (human resources and information systems) to the two operating departments using the reciprocal method. Use (a) linear equations and (b) repeated iterations. 3. In the case presented in this exercise, which method (direct, step-down, or reciprocal) would you recommend? Why? Direct allocation data Support Departments Operating Departments HR Info. Systems Corporate Consumer Total Costs incurred $90,000 $227,000 $994,000 $484,000 $1,795,000 Allocation of HR costs (90,000) 49,500 40,500 Allocation of Info. Systems costs (227,000) 158,900 68,100 Total budgeted costs of operating departments $0 $0 $1,202,400 $592,600 $1,795,000 A B C D E 1 SUPPORT DEPARTMENTS OPERATING DEPARTMENTS 2 Human Resources Information Systems…
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees Transactions 22 45 33 36,000 $361,000 19,000 $945,000 76,000 $3,670,000 Department direct costs $149,000 Required: a. Allocate the cost of the service departments to the operating departments using the direct method. b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. c. Allocate the cost of the service departments to the operating departments using the reciprocal method. Complete this question by entering your answers in the tabs below. Required A Required B Required C Allocate the cost of the service departments to the operating departments…
Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $334,400. During that time, the company produced 14,900 units of the M-008 and 2,400 units of the M-123. The direct costs of production were as follows. М-008 М-123 Total Direct materials $119,200 $ 96,000 48,000 $215,200 Direct labor 119,200 167,200 Management…
ngageNOWv2 | Online teachin X + om/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress... € Compute conversion costs given the following data: direct materials, $363,600; direct labor, $192,400; factory overhead, $204,500 and selling expenses, $35,600. Oa. $396,900 Ob. $568.100 Oc. $168,900 Od. $760,500 8 5/2
need answers for 1,2,3 and 4 4. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how both cost schedules and the income statement will change if the following data change: direct labor is $390,000 and utilities cost $35,000.
docs.google.com/forms/d/e Q 1/ Answer The Following Questions * :Cost objects include .1 products customers departments All of above answers are correct. The general term used to identify both .2 the tracing and the allocation of * :accumulated costs to a cost object is cost accumulation cost assignment cost tracing conversion costing :Budgeted costs are .3 II