Support Department Allocations The centralized computer technology department of Hardy Company has expenses of $242,000. The department has provided a total of 11,000 hours of service for the period. The Retail Division has used 8,250 hours of computer technology service during the period, and the Commercial Division has used 2,750 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 ?

Q: Income for Profit Center The centralized computer technology department of Crutchfield Company has…

A: Following is the divisional income from operations

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A: Solution a: Computation of Service Charge rate for CCS department - Middler Corporation CCS…

Q: The centralized computer technology department of Crutchfield Company has costs of $982,500. The…

A: Cost per hour = Total costs / total hours = $982,500 / 13,100 hours = $75 per hour

Q: Service Department Charges The centralized computer technology department of Hardy Company has…

A: Expenses between divisions in a company or organization are allocated based on the usage of related…

Q: Cost Department Allocations In divisional income statements prepared for Demopolis Company, the…

A: The total number of payroll checks can be computed by adding the total weekly and monthly checks.

Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives,…

A: Calculation of total number of machine hours : Products Machine Hours Disk drives…

Q: Support Department Allocations The centralized computer technology department of Hardy Company has…

A: Expenses would be allocated in proportion Time spent on each division.

Q: Service Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

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A: Given that: Method to be used for cost allocation = Direct method Basis of allocation = Number of…

Q: information technology and operations. The support provided by information technology and opera-…

A:

Q: Allocate 2017 fixed corporate-overhead costs to the three divisions using division margin as the…

A: Following are the allocation of fixed corporate-overhead based on division margin:

Q: What are the total overhead costs of the operating departments (Eastern and Western) after the…

A:

Q: Westmore Company has two service departments and two operating departments. Budgeted costs and other…

A:

Q: The centralized computer technology department of Hardy Company has expenses of $61,600. The…

A: Note: Computer Technology Department expenses to be apportioned to Retail Division and Commercial…

Q: Cost Department Allocations In divisional income statements prepared for Demopolis Company, the…

A: Total Support department allocations=Payroll Department allocations+Purchasing Department…

Q: ilers Company has two producing departments and two support departments. The following budgeted data…

A: The question is based on the concept of Cost Accounting.

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A: In firm generally two departments work production department and the service department.there are…

Q: Accounting   Selecting an Allocation Base for Service Costs. Winstead, Inc., is looking for an…

A: Overheads are the indirect costs that are to be allocated to different departments based upon some…

Q: The centralized computer technology department of Hardy Company has expenses of $320,000. The…

A: Here  allocation is based on hours used by each  department

Q: Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating…

A: ABC (activity-based costing) allocates the overhead costs to various production-related activities.…

Q: Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Large…

A: A budgeted cost is an estimated future expense that the company anticipates incurring i.e. it refers…

Q: Karen Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent…

A: Indirect expenses are the expenses that are incurred to run a business. The indirect expenses may be…

Q: ervice Department Charges The centralized computer technology department of Hardy Company has…

A: Hardy Company Computer Technology Dept. expenses to be apportioned to Retail Division and Commercial…

Q: Support Department Allocations The centralized computer technology department of Hardy Company has…

A: The expenses incurred by centralised department are to be allocated to different division of…

Q: divisional income

A: It is pertinent to note that cost centers does not generate any revenue to the entity . However…

Q: How much of the headquarters cost allocation should Nashville expect to receive next year?

A: Administrative service cost allocated to Nashville: 1680000*70% =1176000   Development service cost…

Q: Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating…

A: The reciprocal method allocates expenditures incurred by service departments to other departments…

Q: The centralized computer technology department of Hardy Company has expenses of $320,000. The…

A: SOLUTION- OPERATING INCOME- IT IS THE AMOUNT OF PROFIT MADE FROM A COMPANY BUSINESS OPERATIONS AFTER…

Q: Comparison of Methods of Allocation Duweynie Pottery, Inc., is divided into two operating…

A: Reciprocal method: Allocation of service department costs to production departments using reciprocal…

Q: The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services…

A: Under Dual rate method, each department consists of a variable pool and a fixed pool and allocates…

Q: BluStar Company has two service departments, Administration and Accounting, and two operating…

A: Solution: Introduction: There are three common methods to allot or distribute the service costs to…

Q: Middler Corporation, a manufacturer of electronics and communications systems, uses a service…

A:

Q: The centralized computer technology department of Hardy Company has expenses of $320,000. The…

A: Per hour rate = Expenses / Total hours                       = $320,000 / 4,000…

Q: Middler Corporation, a manufacturer of electronics and communications systems, uses a service…

A: Service charge rate can be determined by dividing the budget cost of service category with base…

Q: Service Department Charges: Anibo Aviation Services has two operating divisions - Airframe Division…

A: All the costs of the snack bars is to be allocated between the divisions on the basis of number of…

Q: Service Department Charges and Activity Bases Middler Corporation, a manufacturer of electronics…

A: Answer a

Q: estmore Company has two service departments and two operating departments. Budgeted costs and other…

A: Total amount of cost allocated from the two service departments to the operating departments for the…

Q: e Eastern District of Adelson Inc. is organized as a cost center. The budget for the Eastern…

A: A budget performance report is an administration report that looks at the actual incomes and…

Q: The centralized computer technology department of Crutchfield Company has costs of $982,500. The…

A:

Q: Middler Corporation, a manufacturer of electronics and communications systems, uses a service…

A: Cost per activity = Total cost / Total activity

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.