FUNDAMENTAL ACCT PRIN CONNECT ACCESS
25th Edition
ISBN: 9781265592455
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 24, Problem 6E
Exercise 24-6
Departmental expense allocation spreadsheet
P2
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two
operating departments for the year 2017.
The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 is an indirect expense to all departments. Prepare a departmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $64,000 of
utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department's expenses to the two operating departments on the basis of the number of ads placed that promoted a department's products, and (4) the administrative department's expenses to the two operating departments based on the amount of sales. Provide supporting computations for the expense allocations.
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Stage 2 ABC for a Wholesale CompanyInformation is presented for the activity costs of Brighton Wholesale Company:
Activity
Cost per Unit of Activity Driver
Customer relations
$82.00 per customer per month
Selling
0.09 per sales dollar
Accounting
7.00 per order
Warehousing
0.60 per unit shipped
Packing
0.35 per unit shipped
Shipping
0.40 per pound shipped
The following information pertains to Brighton Wholesale Company's activities in Colorado for the month of June 2017:
Number of orders
320
Sales revenue
$218,000
Cost of goods sold
$98,100
Number of customers
40
Units shipped
5,400
Pounds shipped
81,000
RequiredDetermine the profitability of sales in Colorado for June 2017.Do not use a negative sign with your answers.
Profitability of Sales in Colorado
March 2017
Sales revenue
Answer
Less:
Cost of goods sold
Answer
Customer relations
Answer
Selling expenses
Answer
Accounting
Answer
Warehousing
Answer…
Current Attempt in Progress
Flint's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated
based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments
is $269300, $161200, and $66300, respectively. Information on the hours used are as follows:
Hours in Acct
Hours in Admin
Hours in HR
Acct
$0.
$204645.
$190888.
O $216942.
16
8
Admin HR
48
eTextbook and Media
20
8
Surgery
360
120
65
ER
220
80
What are the total costs allocated to the ER department from the supporting departments? (Do not round the intermediate calculations.)
130
Attemnte: 0 of Queed
Chapter 24 Solutions
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
Ch. 24 - Prob. 1QSCh. 24 - QS 24-2 Basis for cost allocation C1
In each...Ch. 24 - QS 244
Responsibility accounting report...Ch. 24 - QS 24-5
Allocating costs to departments...Ch. 24 - QS 24-6
Allocating costs to departments P2...Ch. 24 - QS 24-7
Allocating costs to departments
P2...Ch. 24 - Prob. 7QSCh. 24 - QS 24-9
Departmental contribution to overhead...Ch. 24 - QS 24-10
Computing return on investment A1...Ch. 24 - QS 24-11
Computing residual income
A1
Refer to...
Ch. 24 -
QS 24-12
Performance measures
A1 A2
Fill in...Ch. 24 - QS 24-13
Computing profit margin and investment...Ch. 24 - Prob. 13QSCh. 24 - Prob. 14QSCh. 24 - Prob. 15QSCh. 24 - Prob. 16QSCh. 24 - Prob. 17QSCh. 24 - Prob. 18QSCh. 24 - Prob. 19QSCh. 24 - Prob. 20QSCh. 24 - Prob. 21QSCh. 24 - Prob. 1ECh. 24 - Prob. 2ECh. 24 - Prob. 3ECh. 24 - Prob. 4ECh. 24 - Prob. 5ECh. 24 - Exercise 24-6 Departmental expense allocation...Ch. 24 - Prob. 7ECh. 24 - Prob. 8ECh. 24 - Prob. 9ECh. 24 - Prob. 10ECh. 24 - Prob. 11ECh. 24 - Prob. 12ECh. 24 - Prob. 13ECh. 24 - Prob. 14ECh. 24 - Prob. 15ECh. 24 - Prob. 16ECh. 24 - Prob. 17ECh. 24 - Prob. 18ECh. 24 - Prob. 19ECh. 24 - Prob. 20ECh. 24 - Prob. 21ECh. 24 - Prob. 22ECh. 24 - Prob. 23ECh. 24 - Prob. 1PSACh. 24 - Prob. 2PSACh. 24 - Prob. 3PSACh. 24 - Prob. 4PSACh. 24 - Prob. 5PSACh. 24 - Prob. 1PSBCh. 24 - Prob. 2PSBCh. 24 - Prob. 3PSBCh. 24 - Prob. 4PSBCh. 24 - Prob. 5PSBCh. 24 - Prob. 24SPCh. 24 - Prob. 1AACh. 24 - Prob. 2AACh. 24 - Prob. 3AACh. 24 - Prob. 1DQCh. 24 - Prob. 2DQCh. 24 - Prob. 3DQCh. 24 - Prob. 4DQCh. 24 - Prob. 5DQCh. 24 - Prob. 6DQCh. 24 - Prob. 7DQCh. 24 - Prob. 8DQCh. 24 - Prob. 9DQCh. 24 - Prob. 10DQCh. 24 - Prob. 11DQCh. 24 - Prob. 12DQCh. 24 - Prob. 13DQCh. 24 - Prob. 14DQCh. 24 - Prob. 15DQCh. 24 - Prob. 16DQCh. 24 - Prob. 17DQCh. 24 - Prob. 18DQCh. 24 - Prob. 1BTNCh. 24 - Prob. 2BTNCh. 24 - Prob. 3BTNCh. 24 - Prob. 4BTN
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