Pls help me Vicente Company operates with two producing departments, PI and P2and two service departments, Sl and S2. Actual mabefore allocation of service department costs, together with the usage ofservice from the service departments, is as follows:ufacturing overhendActual Manufaeturing OverheadBefore Allocation ofSeruice Departmental CostsServices prouided byDepartmentIS10%090%000Required:Compute the total hanulacturinz overhead (ineluding serdepartments costs) for ench producing department, allocatingservice costs to producing departiments only.Compute the total maniacturing.overhead (including servicedepartments costs) for each producing department allocatingservice department costs stepwise, beonning with department$2.Aner. department expenses bave been ailocated, noexpensics ay ed bck.coir3.DeterminthetotaldepartmentcONGreciprocal rnethed2verbend dincluding serviceproducing department using theநமரங்க2.jpg1.jpgdp Jack and Tom has three revenue-departmente; litigation (Lit.), familypractice (FP), and legal consulting (LC). In addition, the company hastwo support departments, administition and EDP. Administration costsare allocated to the three revenue departments on the basis of number ofemployees. EDP's fixed costs are allocated to revenue departments onthe basis of peak hours of monthly service expected to be used by eachrevenue departments. EDP's variable costs are assigned to the revenuedepartments at a transfer price of P40 per hour of actual service. Followingare the direct costs and the allocation bases associated with each of thedepartments:NUMBER OFS NOLLVOTIVDirect Cost(before transfer Cost) Employees Hours Hours UsedEDPAdministration302.Lit.गवणण-ddsRequired:Allocate all support department costs to the operating departmentsusing the direct method.What are the total costs of the operating.departaments after theallocation in (a)?Add file2.jpg6df

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Vicente Company operates with two producing ce artments, PI and P2, and two service departments, S1 and S2. Actual manufacturing overhead before allocation of service department costa, together with the usage of service from the service departments, is as follows: Actual Manufacturing Overhead Before Allocation of Service Departmental Costs Services prouided by Department IS 000 0F d 009 00 %0% P2 09 OF P120,000 600 Compute the total manufacturing overhead (including service 1. departments costs) for each producing department, allocating service costs to producing departments only. 2. Compute the total manufacturing overhead (including service departments costs) for each producing department, allocating service department costs stepwise, beginning with department S2. After a department expenses hsave been allocated, no expenses are assigned back to it. Determine the total manufacturing overhead (including service 3. department Osts) for each producing department using the reciprocal method. 1.jpg 2.jpg

Vicente Company operates with two producing ce artments, PI and P2, and two service departments, S1 and S2. Actual manufacturing overhead before allocation of service department costa, together with the usage of service from the service departments, is as follows: Actual Manufacturing Overhead Before Allocation of Service Departmental Costs Services prouided by Department IS 000 0F d 009 00 %0% P2 09 OF P120,000 600 Compute the total manufacturing overhead (including service 1. departments costs) for each producing department, allocating service costs to producing departments only. 2. Compute the total manufacturing overhead (including service departments costs) for each producing department, allocating service department costs stepwise, beginning with department S2. After a department expenses hsave been allocated, no expenses are assigned back to it. Determine the total manufacturing overhead (including service 3. department Osts) for each producing department using the reciprocal method. 1.jpg 2.jpg

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 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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Refer to the data in Exercise 7.20. The company has decided to use the sequential method of allocation instead of the direct method. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the overhead costs to the producing departments using the sequential method. (Take allocation ratios out to four significant digits. Round allocated costs to the nearest dollar.) 2. Using machine hours, compute departmental overhead rates. (Round the overhead rates to the nearest cent.)
Refer to the data in Exercise 7.22. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the costs of the support departments using the sequential method. (Round allocation ratios to four significant digits. Round allocated costs to the nearest dollar.) 2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest cent.)
Refer to the data in Exercise 7.18. When the capacity of the HR Department was originally established, the normal usage expected for each department was 20,000 direct labor hours. This usage is also the amount of activity planned for the two departments in Year 1 and Year 2. Required: 1. Allocate the costs of the HR Department using the direct method and assuming that the purpose is product costing. 2. Allocate the costs of the HR Department using the direct method and assuming that the purpose is to evaluate performance.
Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400
Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
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.
Using the data from Exercise 6.18, compute the equivalent units of production for each of the four departments using the FIFO method. The following data are for four independent process-costing departments. Inputs are added continuously.
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.
Refer to Cornerstone Exercise 7.3. Now assume that Valron Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost. Required: 1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. 2. Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. (Round all allocated costs to the nearest dollar.) 3. What if the allocation ratios in Requirement 1 were rounded to six significant digits rather than four? How would that affect any rounding error in the allocation of costs?
Young Company is beginning operations and is considering three alternatives to allocate manufacturing overhead to individual units produced. Young can use a plantwide rate, departmental rates, or activity-based costing. Young will produce many types of products in its single plant, and not all products will be processed through all departments. In which one of the following independent situations would reported net income for the first year be the same regardless of which overhead allocation method had been selected? a. All production costs approach those costs that were budgeted. b. The sales mix does not vary from the mix that was budgeted. c. All manufacturing overhead is a fixed cost. d. All ending inventory balances are zero.
Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each department and the data for one job are as follows: Using the departmental overhead application rates, and allocating overhead on the basis of direct labor hours, overhead applied to Job 231 in the Tooling Department would be: a. 44.00. b. 197.50. c. 241.50. d. 501.00.