Managerial Accounting
16th Edition
ISBN: 9781259995484
Author: Ray Garrison
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 4.B, Problem 2E
EXERCISE 4B-2 Step-Down Method LO4-11
Madison Park Co-op. a whole foods grocery and gift shop, has provided the following data to be used in the service department cost allocations:
Service Departments Operating Departments
| Administration Janitorial | Groceries | Gifts | ||
| Departmental costs before allocations… | $150,000 |
$40,000 | $2,320,000 | $950,000 |
| Employee-hours | 320 |
160 | 3,100 | 740 |
| Space occupied-square feet | 250 |
100 | 4,000 | 1,000 |
Required:
Using the step-down method, allocate the costs of the service departments to the two operating departments Allocate Administration first on the basis of employee-hours and then Janitorial on the basis of space occupied.
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QUESTION 29
A company has two service departments (S1 and S2) and two user departments (U1 and U2). The following information is available:
Service
Department
Cost
Cost Allocation
Base
Amount of service used by
S1
S2
User Department, U1
User Department, U2
S1
$160,000
Number of Service Calls (SC)
–
25 SC
60 SC
15 SC
S2
$200,000
Computer hours (CH)
2,000 CH
–
3,000 CH
5,000 CH
Based on the direct method, how much of the service department costs will be allocated to U1?
A.
$156,000
B.
$203,000
C.
$186,000
D.
$171,000
Ch. 3 MG Homework Saved Help Save & Exit SubmitThe following four companies use a process cost system:Required:Treating each case independently, find the missing amount
solana co.
vista.co
Ray Inc.
Lindsay company
conversion cost
?
235200
56350
?
direct labor
43000
?
25300
13300
depreciation
2400
17400
?
1500
manufacturing overhead
25500
143600
?
?
rent
16100
?
10100
830
direct materials
89100
362050
39600
17050
supervisors salary
5200
19450
2700
1900
utilities
?
34200
8850
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Problem 22-4A Departmental contribution to income LO P3
Vortex Company operates a retail store with two departments. Information about those departments follows.
Department A
Department B
Sales
$
800,000
$
450,000
Cost of goods sold
497,000
291,000
Direct expenses:
Salaries
125,000
88,000
Insurance
20,000
10,000
Utilities
24,000
14,000
Depreciation
21,000
12,000
Maintenance
7,000
5,000
The company also incurred the following indirect costs.
Salaries
$36,000
Insurance
6,000
Depreciation
15,000
Office expenses
50,000
Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows.
Department
Square footage
Number of employees
A
28,000
75
B
12,000
50
Required:1.…
Chapter 4 Solutions
Managerial Accounting
Ch. 4.A - EXERCISE 4A-1 Computation of Equivalent Units of...Ch. 4.A - EXERCISE 4A-2 Cost per Equivalent Unit-FIFO Method...Ch. 4.A - EXERCISE 4A-3 Assigning Costs to Units-FIFO Method...Ch. 4.A - EXERCISE 4A-4 Cost Reconciliation Report-EIFO...Ch. 4.A - EXERCISE 4A-5 Computation of Equivalent Units of...Ch. 4.A - EXERCISE 4A-6 Equivalent Units of Production-FIFO...Ch. 4.A - EXERCISE 4A-7 Equivalent Units of Production and...Ch. 4.A -
EXERCISE 4A-8 Equivalent Units of Production—FIFO...Ch. 4.A - EXERCISE 4A-9 Equivalent Units; Equivalent Units...Ch. 4.A - PROBLEM 4A-10 Equivalent Units of Production;...
Ch. 4.A - Prob. 11PCh. 4.A - Prob. 12CCh. 4.B - Prob. 1ECh. 4.B - EXERCISE 4B-2 Step-Down Method LO4-11 Madison Park...Ch. 4.B - Prob. 3ECh. 4.B - EXERCISE 4B-4 Direct Method LO4-10 Refer to the...Ch. 4.B - PROBLEM 4B-5 Step-Down Method L04-11 Woodbury...Ch. 4.B - PROBLEM 4B-6 Step-Down Method versus Direct...Ch. 4.B - CASE 4B-7 Step-Down Method versus Direct Method...Ch. 4 - Prob. 1QCh. 4 - In what ways are job-order and process costing...Ch. 4 - Why is cost accumulation simpler in a process...Ch. 4 - How many Work in Process accounts are maintained...Ch. 4 - Prob. 5QCh. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 1AECh. 4 - This exercise relates to the Double Diamond Skis’...Ch. 4 - This exercise relates to the Double Diamond Skis’...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 - Clopack Company manufactures one product that goes...Ch. 4 - Prob. 10F15Ch. 4 - Prob. 11F15Ch. 4 - Prob. 12F15Ch. 4 -
Clopack Company manufactures one product that...Ch. 4 - Prob. 14F15Ch. 4 - Prob. 15F15Ch. 4 - Prob. 1ECh. 4 - Prob. 2ECh. 4 - Prob. 3ECh. 4 - EXERCISE 4-4 Assigning Costs to...Ch. 4 - EXERCISE 4-5 Cost Reconciliation...Ch. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 -
EXERCISE 4-9 Equivalent Units and Cost per...Ch. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - PROBLEM 4-16 Comprehensive...Ch. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19CCh. 4 - (
CASE 4-20 Ethics and the Manager, Understanding...
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