Using the information above, what is the profit margin for each division? Using the information above, what is the return on investment for each division? Using the information above, what is the residual income for each division?
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- Use this information for ABC Corporation to answer the question that follow. ABC Corporation has three service departments with the following costs and cost drivers: Service Department Cost Cost Driver Graphics Production $200,000 Number of copies made Accounting 500,000 Number of invoices processed Personnel 400,000 Number of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost, and activity information is as follows: Micro Macro Super Revenues $700,000 $850,000 $650,000 Direct operating expenses $50,000 $70,000 $100,000 Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 800 500 Number of employees 130 145 125 What is the service department allocation rate for the Personnel Department? a.$1,000 per employee b.$2,758 per employee c.$3,077 per employee d.$3,200 per employee. Lead LLC has three production departments and four service departments. The expenses for these departments are as follows: Production Departments Amount (RO) B121 5,000,000 C121 3,000,000 D121 2,000,000 Total Amount 10,000,000 Service Departments Amount (RO) Stores 200,000 Time keeping & accounts 100,000 Power 300,000 Canteen 400,000 Total Amount 1,000,000 The following information is also available in respect of the production departments: Particulars Department A Department B Department C Horse power of machine 200 100 300 Number of workers 10 8 7 Value of stores requisition (RO) 100,000 75,000 25,000 Apportion the cost of service department over the production departments.Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company’s communications network, which are $8,500,000 a year. You have the following information about the two divisions and the common communications network. Calls (thousands) Time on Network (hours) Air express 553,000 337,500 Ground service 237,000 1,012,500 Required: a. What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? b. What is the communications network cost to each division using time on network as the allocation basis?
- Bartolo Delivery has two divisions, air express and ground service, that share the common costs of the company’s communications network, which are $8,300,000 a year. You have the following information about the two divisions and the common communications network. Calls (thousands) Time on Network (hours) Air express 511,000 347,500 Ground service 219,000 1,042,500 Required: What is the communications network cost that is charged to each division if the number of calls is used as the allocation basis? What is the communications network cost to each division using time on network as the allocation basis?ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 number of copies made Accounting 500,000 number of invoices processed Personnel 400,000 number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows: Micro Macro Super Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 800 500 Number of employees 130 145 125 The support department cost that will be allocated to the Macro Division is a.$175,000 b.$130,000 c.$305,000 d.$405,000ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 number of copies made Accounting 500,000 number of invoices processed Personnel 400,000 number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows: Micro Macro Super Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 800 500 Number of employees 130 145 125 The support department allocation rate for the Accounting Department is
- ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 number of copies made Accounting 500,000 number of invoices processed Personnel 400,000 number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows: Micro Macro Super Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 800 500 Number of employees 130 145 125 The support department allocation rate for the Accounting Department is a. $714 b. $625 c. $250 d. $0.004ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 number of copies made Accounting 500,000 number of invoices processed Personnel 400,000 number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows: Micro Macro Super Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 800 500 Number of employees 130 145 125 The support department allocation rate for the Accounting Department is Group of answer choices $714 $250 $625 $0.004Baldwin 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.
- 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 to security department using direct methodXL LLC has three production departments and four service departments. The expenses for these departments are as follows: Production Departments Amount (RO) A 3,000,000 B 2,600,000 C 2,400,000 Total Amount 8,000,000 Service Departments Amount (RO) Stores 400,000 Time keeping & accounts 300,000 Power 160,000 Canteen 100,000 Total Amount 960,000 The following information is also available in respect of the production departments: Particulars Department A Department B Department C Horse power of machine 300 300 200 Number of workers 20 15 15 Value of stores requisition (RO) 250,000 150,000 100,000 Apportion the cost of service department over the production departments.Spirits and More operates two departments, Cutting and Fabrication. Two service departments, maintenance and purchasing, are also included within the company. The operating costs and distribution of each service department's efforts to the other departments is as follows: Maintenance Purchasing Operating Costs Maintenance 0% 25% $87,000 Purchasing 35% 0% 16,000 Cutting 15% 60% 80,000 Fabrication 50% 15% 56,000 Using the direct method of allocating support costs, what is the total cost accumulated in the fabrication department? Question options: a) $56,000.00 b) Maintenance Purchasing Costs c) $70,123.00 d) $77,750.00 e) $126,123.00