EBK EXCEL APPLICATIONS FOR ACCOUNTING P
4th Edition
ISBN: 8220100456848
Author: SMITH
Publisher: CENGAGE L
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A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $17,000 indicates that Dept. Y had a direct expense of $1,800 for deliveries and Dept. Z had no direct expense. The indirect expenses are $15,200. The analysis also indicates that 45% of regular delivery requests originate in Dept. Y and 55% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are:
Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows:
Tech Support Department
$567,000
Purchasing Department
96,900
Other corporate administrative expenses
590,000
Total corporate expense
$1,253,900
The other corporate administrative expenses include officers’ salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows:
Tech Support
Purchasing
Consumer Division
360 computers
1,990 purchase orders
Commercial Division
270
3,710
Total
630 computers
5,700 purchase orders
The service department charges of…
In divisional income statements prepared for Iguana Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll checks, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $62,704, and the Purchasing Department had expenses of $31,860 for the year. The following annual data for the Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Residential
Commercial
GovernmentContract
Sales
$666,000
$883,000
$2,026,000
Number of employees:
Weekly payroll (52 weeks per year)
125
75
80
Monthly payroll
28
39
26
Number of purchase requisitions per year
2,300
1,600
1,500
Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from…
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- Championship Sports Inc. operates two divisionsthe Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: The bases to be used in allocating expenses, together with other information, are as follows: a. Advertising expenseincurred at headquarters, allocated to divisions on the basis of usage: Winter Sports Division, 375,000; Summer Sports Division, 715,000. b. Transportation expenseallocated to divisions at a rate of 4.00 per bill of lading: Winter Sports Division, 17,500 bills of lading; Summer Sports Division, 30,500 bills of lading. c. Accounts receivable collection expenseincurred at headquarters, allocated to divisions at a rate of 1.00 per invoice: Winter Sports Division, 25,000 sales invoices; Summer Sports Division, 43,000 sales invoices. d. Warehouse expenseallocated to divisions on the basis of floor space used in storing division products: Winter Sports Division, 60,000 square feet; Summer Sports Division, 90,000 square feet. Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Provide supporting computations for support department allocations.arrow_forwardRelco Industries recently purchased Arbeck, Inc., a manufacturer of electrical components that the construction industry uses. Roland Ford has been appointed as chief financial officer of Arbeck, and the president of Relco, Martha Sanderson, has asked him to prepare an organizational chart for his department at Arbeck. The chart that Ford has prepared is shown in the figure. Ford believes that the treasurer’s department should include the following employees: assistant treasurer, manager of accounts receivable and four subordinates, manager of investments and three subordinates, and manager of stockholder relations and two subordinates—a total of 13 employees besides the treasurer.The controller’s department should consist of an assistant controller, a manager of general accounting and four subordinates, a manager of fixed asset control and three subordinates, and a manager of cost accounting with four subordinates—a total of 15 employees besides the controller.When Ford presented his…arrow_forwardPower Sports Company has two divisions, Wholesale and Retail, and two corporate service departments, Tech Support and Accounts Payable. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department $1,146,600 Accounts Payable Department 522,000 Other corporate administrative expenses 717,000 Total corporate expense $2,385,600 The other corporate administrative expenses include officers' salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in the department, and the Accounts Payable Department charges divisions for services, based on the number of checks issued. The usage of service by the two divisions is as follows: Tech Support Accounts Payable Wholesale Division 480 computers 6,100 checks Retail Division 300 11,300 Total 780 computers 17,400 checks The service department charges of the Tech Support…arrow_forward
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