Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Employees Square Feet Asset Values $ 6,400 3,840 32,640 21,120 $ 64,000 Department Materials Personnel Manufacturing Packaging Total 36 9 Total 66 39 150 49,000 14,000 56,000 21,000 140,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Insurance Cost Allocation Base $ 82,500 Number of employees 54,000 Square feet occupied 24,500 Asset values. $ 161,000 Allocate each of the three indirect expenses to the four departments.
Q: Going Higher Construction sponsors a 401(k) profit sharing plan. In the current year, Going Higher…
A: Answer:- Profit sharing:- A plan known as "profit sharing" is one that is designed by businesses…
Q: Upon the death of a police officer, Leff City establishes a trust fund to provide for the education…
A: Special Education Fund is provided to local governments for the purpose of management of education…
Q: Which of the following statements about the calculation of corporate alternative minimum tax (AMT)…
A: The Alternative Minimum Tax (AMT) is a parallel tax system that ensures individuals and corporations…
Q: How much is the vanishing deduction on the estate of X?
A: The phrase "vanishing deduction" refers to the gradual removal from a deceased person's gross estate…
Q: NoFlush is a firm
A: Back flush costing system is a product costing system. This system records cost only after the sale…
Q: following information applies to the questions displayed below.] The Platter Valley factory of Bybee…
A: According to the question given, we need to compute the overhead variances Variance:variance refers…
Q: Prepare a statement of cash flows using the indirect method.
A: An indirect method of cash flow is used by the company which is prepared from the net income and all…
Q: Question 1 • Rachael and Olivia are business partners in RO Dance Their partnership agreement states…
A: Partnership deed is a voluntary contract between two or more than two persons to place their…
Q: 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the…
A: A Bond is a debt security which is issued by the borrower to the lender. The lender is known as…
Q: What are the client's taxes on this investment?..
A: Dividends and capital gains are taxed at 15%. There is no clear information whether short term or…
Q: Income statement and balance sheet data for The Athletic Attic are provided below. THE ATHLETIC…
A: Lets understand the basics.The ratio analysis helps to analyze the financial statements of the…
Q: a. Payroll cost to be included in SG&A cost b. Payroll cost to be included in cost of goods sold
A: SG&A expenses can be defined as all the operating expenses incurred by a firm. SG&A expenses…
Q: TJ's Cheese Cake Factory, Inc. sells original cheese cake for $16 each. The company provided the…
A: "Since you have asked a question with with multiple sub-parts, the first three sub-parts are…
Q: Blossom Company has the following cumulative taxable temporary differences: 12/31/22 $3520000…
A: Answer:- Pretax income:- Pretax income, commonly referred to as earnings before taxes, is a…
Q: Nokia Corporation is a global leader in providing integrated communications and electronic solutions…
A: Financial Leverage is one of useful leverage ratio being used in business. This is calculated by…
Q: Product Stock on Hand Number Sold Price Product X 150 R Product Y 200 Product Z 300 500 550 400…
A: Answer:- FormulaAverage price = Total revenue of product sold / Total number of products sold
Q: Wildhorse Ltd. reported the following information in its balance sheet and income statement for the…
A: A cash flow statement indicates cash inflow and outflow information for a particular time period and…
Q: Classify the following costs into engineered, committed and discretionary costs 2 Wages of employees…
A: Engineered Costs: Costs directly tied to production or activity levels, like raw materials and…
Q: Tax rates other than the current tax rate may be used to calculate the deferred income tax amount on…
A: Taxation is the process by which governments collect money from individuals and businesses to fund…
Q: Sunland Company sells equipment on March 31, 2024, for $34,445 cash. The equipment was purchased on…
A: Depreciation refers to a decline in the value of a fixed asset over its useful life.Depreciation…
Q: 101) On April 1 of the current year, a company purchased and placed in service a machine with a cost…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in the value of an asset due to normal wear…
Q: Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet…
A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…
Q: ↑ (Analyzing the quality of firm earnings) Kabutel, Inc had net income of $750,000, cash flow from…
A: The cash flow from the operations of the entity s very important because an entity can't survive if…
Q: The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account…
A: Calculate Total Claims: Calculate the total claims of partners, which include their capital balances…
Q: On January 1, Boston Enterprises issues bonds that have a $1,450,000 par value, mature in 20 years,…
A: The issuance of bonds is one method that businesses may use to obtain capital. A bond may be thought…
Q: Kawayan Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit.…
A: The contribution Margin is calculated as difference between sales and variable cost. The net income…
Q: Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation…
A: The variance is the difference between the actual and standard production data. The variance can be…
Q: Cash No. 101 Date Explanation Debit Credit Balance July 1 20,200 20,200 July 1 4,000…
A: The entries passed at the end of the accounting period to nullify the temporary accounts. The…
Q: At the December 31, 2020 balance sheet date, Unruh Corporation reports an accrued receivable for…
A: Deferred tax is the tax effect of timing differences occur due to the differences in accounting…
Q: Lola owns a one-half interest in the Lenax LLC. Her basis in this ownership interest is $197,000 at…
A: The limited liability company (LLC) business form shields its owners from being held personally…
Q: The governmental funds of the City of Westchester report $601,500 in assets and $214,000 in…
A: A "fund" is a collection of money that is received, earn, and invested with a particular objective…
Q: The Gourmand Cooking School runs short cooking courses at its small campus. Management has…
A: The revenue and spending variance is the difference between the actual results and flexible budget…
Q: 1. Compute budgeted cash receipts and budgeted cash payments for each month. 2. Compute the balances…
A: Budget is a statement prepared to know the estimated values of different line items in an…
Q: Under the weighted average cost, when a unit is sold, the average cost of each unit in inventory is…
A: Weighted Average Cost refers to a financial calculation used to determine the average cost of a…
Q: The following trial balance was extracted from the books of Green at 30 September Year 7: Account…
A: Every company maintains its records under which it prepares the financial statements which include…
Q: On 30 November 2017 a finishing machine was sold. Its capital cost was $25,000 and accumulated…
A: Companies some times sells the assets and from which there can be either a gain or loss.Given in the…
Q: The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a…
A: In some cases, management has to take decisions regarding whether or not to continue a product line…
Q: Joanne is part of the accounts payable team at a local furniture store, responsible for recording…
A: Lets understand the basics.Journal entry is required to record event and transaction that occur…
Q: The law firm of Ivanhoe and Kingbird relies heavily on a colour laser printer to process its…
A: Answer:- Buying decision:- It refers to a process of decision-making, when the buyer must choose…
Q: Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product…
A: Activity-Based Costing (ABC) is used to identify, describe, assign costs to, and report on agency…
Q: WALANG ORAS PARA SAYO Inc. is a small New England company that manufactures custom clocks. It uses…
A: Absorption of overhead is the basis to absorb the overhead amount on the basis of some basis to be…
Q: Assume that the market price for Grade A silver is $15 per troy ounce on December 31, 2016. What are…
A: DateparticularsDebitCreditMay1,2016call option$1,000 to Bank$1,000
Q: Hartman Delivery Service purchased a new delivery truck for $29,000. At the time of purchase,…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Krawczek Company will enter into a lease agreement with Heavy Equipment Company where Krawczek will…
A: In a lease, a lessor agrees to give a lessee authority over the use of particular property, plant,…
Q: Revenue recognition at a point in time On July 1, 2024, Apache Company, a real estate developer,…
A: Revenue recognition is very important because when the revenue is recognized is an important part of…
Q: 1. Blossom Company’s fiscal year end is December 31. On January 31, 2024, the company’s partial…
A: The unearned service revenue represents the advance receipt for the customer for which the entity…
Q: Take me to the text Clear Seas Catering is considering whether to retain or replace its aging…
A: To maintain operational effectiveness, boost productivity, or adhere to industry standards,…
Q: Using the following codes, identify the basic approach(es) to tax avoidance that are used in each of…
A: The percentage of an individual's or entity's income that is subject to taxes by a government body,…
Q: 14 DUFFLE Corp. had the following data ascertained before liquidation: Total book value of the…
A: Anything which are owned by the company are that means the ownership right is with the company then…
Q: Lauderdale Corporation is organized in three geographical divisions (regions) with managers…
A: Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability…
Godo
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor 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.Charlies Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Department spans about 46,400 square feet and holds assets valued at about 60,000. The Cutting Department spans about 33,600 square feet and holds assets valued at about 140,000. Charlies Wood Works allocates support department costs using the direct method. If costs from the Janitorial Department are allocated based on square feet and costs from the Security Department are allocated based on asset value, determine (a) the percentage of Janitorial costs that should be allocated to the Assembly Department and (b) the percentage of Security costs that should be allocated to the Cutting Department.
- 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 – 21 36 43 Transactions 32,000 – 21,000 84,000 Department direct costs 360,000 140,000 $ 935,000 $ 3,730,000 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.Senen corporation has two service departments (maintenance and security) and two producing departments (assembly and finising). The following are the percentage usage of each department use of maintenance dept use of security dept Maintenance 5 % Security 10 % Assembly 60 % 40 % Finishing 30 % 55 % The maintenance department cost is 900,000 and security department cost is 500,000 Compute the service cost allocated tosecurity department using reciprocal methodBluStar 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 — 25 15 60 Transactions 50,000 — 10,000 40,000 Department direct costs $ 61,000 $ 22,500 $ 155,000 $ 593,000 BluStar estimates that the cost structure in its operations is as follows. Administration Accounting Domestic International Variable costs $ 23,500 $ 5,200 $ 114,500 $ 425,000 Fixed costs 37,500 17,300 40,500 168,000 Total costs $ 61,000 $ 22,500 $ 155,000 $ 593,000 Avoidable fixed costs $ 9,750 $ 4,000 $ 18,000 $ 114,000 Required: a. If BluStar outsources the Administration Department, what is…
- Management at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employeed Administration $1,094,100 14 $541,940 Human resources 689,780 11 408,380 Advertising 1,340,920 17 1,067,360 Circulation 1,893,640 36 2,618,420 Totals $5,018,440 78 $4,636,100 a. Using the direct method, allocate the support department costs to the revenue-generating departments. Amount allocated to Advertising: $______ Amount allocated to Circulation: $______ b. Using your answer to (a), what are the total costs of the revenue-generating departments after the allocations? Advertising total…Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows: Personnel Legal Eastern Western Employees - 40 120 40 Hours 10,800 - 5,400 1,800 Department direct costs $ 300,000 $ 160,000 $ 1,200,000 $ 790,000 Required: Allocate the cost of the service departments to the operating divisions using the direct method. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. Allocate the cost of the service departments to the operating divisions using the reciprocal method.Freezo Proprietary Limited has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of 12,163 are allocated on the basis of standard service used. The Personnel Department costs of 3,745 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are R9 000 and R15 000, respectively. Data on standard service hours and number of employees are as follows: MD PD P1 P2 Standard service hours 100 50 325 176 Number of employees 10 20 148 101 Direct labour hours 50 50 250 250 Using the direct method, calculate the cost of the support departments allocated to Department P1.
- The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $489,600 are allocated on the basis of machine hours. The Accounting Department's costs of $122,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $210,000 and $410,000, respectively. Maintenance Accounting A B Machine hours 895 80 2,400 320 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department A using the direct method? Note: Do not round intermediate calculations.The Riverbed Brokerage firm is organized into two major sales divisions: institutional clients and retail clients. The firm also has two support departments: research and administration. The research department’s costs are allocated to the other departments based on a log of hours spent on tasks for each user. The administration department’s costs are allocated based on the number of employees in each department. Records are available for last period as follows: Support departments Operating departments Research Administration Institutional RetailPayroll costs $ 338,400 $ 289,700 $ 366,600 $ 585,200Other costs $ 231,370 $ 163,800 $ 112,830 $ 238,870Research hours 100 200 500 300Number of employees 7 10…The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $300,000 are allocated on the basis of machine hours. The Accounting Department's costs of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $300,000 and $500,000, respectively. Maintenance Accounting A B Machine hours 480 20 2,300 200 Number of employees 2 2 8 4 What is the cost of the Accounting Department's cost allocated to Department A using the step method and assuming the Maintenance Department's costs are allocated first? Note: Do not round intermediate calculations.