Please help me complete table. Thank you Exercise 7-2 (Algo) First Stage Allocation [LO7-2]SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company isimplementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, andOther. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool,and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is anorganization-sustaining activity. The following costs will be assigned using the activity-based costing system:Driver and guard wagesVehicle operating expenseVehicle depreciationCustomer representative salaries andexpensesOffice expensesAdministrative expensesTotal costDriver and guard wagesVehicle operating expenseVehicle depreciationCustomer representative salaries andexpensesOffice expensesThe distribution of resource consumption across the activity cost pools is as follows:Pickup and CustomerDelivery Service35%10%5%0%15%0%Administrative expenses$ 1,180,000610,000490,000Daquired.520,000380,000680,000$ 3,860,000Travel50%70%60%0%0%0%0%20%5%90%30%60%Other5%25%25%10%50%35%Totals100%100%100%100%100%100% Driver and guard wagesVehicle operating expenseVehicle depreciationCustomer representative salaries andexpensesOffice expensesAdministrative expensesDriver and guard wagesVehicle operating expenseVehicle depreciationCustomer representative salaries and expensesOffice expensesTravel50%70%60%Administrative expensesTotal cost0%0%0%Required:Complete the first stage allocations of costs to activity cost pools.TravelPickup andDelivery35%5%15%22620240%20%5%CustomerService10%0%0%Pickup andDelivery90%30%60%Other5%25%25%10%50%35%CustomerServiceTotals100%100%100%100%100%100%OtherTotals

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Description: Please help me complete table. Thank you Exercise 7-2 (Algo) First Stage Allocation [LO7-2]SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company isimplementing an activity-based co

Activity based costing is one of the costing method, in which all type of indirect costs are being…

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Accounting

SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and quard wages $ 1,180,000

SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and quard wages $ 1,180,000

Pkg Acc Infor Systems MS VISIO CD

10th Edition

ISBN:9781133935940

Author:Ulric J. Gelinas

Publisher:Ulric J. Gelinas

Chapter17: Acquiring And Implementing Accounting Information Systems

Section: Chapter Questions

Problem 1SP

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Exercise 11-4 (Algo) Service Department Charges [LO11-4] Hannibal Steel Company has a Transport Services Department that provides trucks to haul ore from the company’s mine to its two steel mills—the Northern Plant and the Southern Plant. Budgeted costs for the Transport Services Department total $168,700 per year, consisting of $0.17 per ton variable cost and $118,700 fixed cost. The level of fixed cost is determined by peak-period requirements. During the peak period, the Northern Plant requires 57% of the Transport Services Department’s capacity and the Southern Plant requires 43%. During the year, the Transport Services Department actually hauled 116,000 tons of ore to the Northern Plant and 51,500 tons to the Southern Plant. The Transport Services Department incurred $370,000 in cost during the year, of which $53,000 was variable cost and $317,000 was fixed cost. Required: 1. How much of the Transport Services Department’s variable costs should be charged to each plant? 2.…
QUESTION 9 QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below: Alternative A Alternative B Projected revenue $ 62,500 $ 75,000 Unit-level costs 12,500 18,000 Batch-level costs 6,250 12,000 Product-level costs 7,500 8,500 Facility-level costs 5,000 6,250 What is the differential revenue for this decision? $62,500 $25,000 $75,000 $12,500
Problem 11-65 (Static) Reciprocal Cost Allocation - Outsourcing a Service Department (LO 11-4, 5) BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees 25 45 180 Transactions 25,000 20,000 80,000 Department direct costs $360,000 144,000 936,000 $3,600,000 BluStar estimates that the cost structure in its operations is as follows. Administration Accounting Domestic International Variable costs $150,000 36,000 678,000 $2,562,000 Fixed costs 210,000 108,000 258,000 1,038,000 Total costs $360,000 144,000 936,000 $3,600,000 Avoidable fixed…
7-8 Calculating product costs using activity-based costing (CIMA adapted) (LO 2) Wieters Industries manufactures several products including a basic case for a popular smartphone. The company is considering adopting an activity-based costing approach for setting its budget. The company's production activities, budgeted activity costs, and cost drivers for the coming year are as follows. Activity Activity Overhead $ Cost Driver Cost DriverQuantity Machine setup $ 200,000 # of setups 800 Inspection 120,000 # of quality tests 400 Materials receiving 252,000 # of purchase orders 1,800 The budgeted data for smartphone case production are as follows. Direct materials $2.50 per unit Direct labor $0.54 per unit Number of setups 92 Number of quality tests 400 Number of purchase orders 50 Production 15,000 units Required a.Calculate the activity rate for each cost pool. b.Calculate the activity-based unit cost of the smartphone case.
Week 8Spark Ltd has two divisions, assembly and electrical. The assembly division transfers partiallycompleted components to the electrical division at a predetermined transfer price. The assemblydivision’s standard variable production cost per unit is $550. This division has spare capacity, and itcould sell all its components to outside buyers at $680 per unit in a perfectly competitive market.Required:-What transfer price would you recommend if there was no outside market for the transferred component and the assembly division had spare capacity? - Explain how negotiation between the supplying and buying units may be used to set transferprices. How does this relate to the general transfer pricing rule?
Problem 10-63 (Algo) Activity-Based Costing of Suppliers (LO 10-3, 4) Roscoe Construction Company (RCC) is a company specializing in building roads and highways. As a part of its business, it receives supplies of aggregate from two suppliers: Toorak Gravel (TG) and Kilda Corporation (KC). RCC purchasing has expressed a preference for KC based on price, but occasionally has to order from TG when KC cannot fill the order. RCC has recently had problems with the quality and the timeliness of deliveries. When a supplier delivers a load to RCC, it goes through an initial inspection to assure it meets specification. If the load fails the initial inspection, it goes through a secondary inspection to determine the exact issue. Almost always, the issue can be resolved and the load can be used. The initial inspection costs $3,000 per load. A secondary inspection, which is more thorough, costs $150 per load. If a delivery is delayed, RCC has to hire temporary workers or pay overtime to some…
Refer to Exercise 12.14. Suppose that for 20x2, Sanford, Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 20x2, the information shown on page 680 is provided. Required: 1. Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1. 2. What is the role of activity reduction for non-value-added activities? For value-added activities? 3. Comment on the value of a trend report.
Activity-based costing in an insurance company Umbrella Insurance Company carries three major lines of insurance: auto, workers' compensation, and homeowners. The company has prepared the following report for 20Y2: Management is concerned that the administrative expenses may make some of the insurance lines unprofitable. However, the administrative expenses have not been allocated to the insurance lines. The controller has suggested that the administrative expenses could be assigned to the insurance lines using activity-based costing. The administrative expenses are comprised of five activities. The activities and their rates are as follows: Activity-base usage data for each line of insurance were retrieved from the corporate records and are shown below. a.Complete the product profitability report through the administrative activities. b.Determine the underwriting income as a percent of premium revenue. C.Determine the Operating income as a percent of premium revenue, rounded to one decimal place. d.Interpret the report.
LO.1 & LO.3 (Plant vs. departmental OH rates) Red River Farm Machine makes a wide variety' of products, all of which must be processed in the Cutting and Assembly departments. For the year 2013, Red River budgeted total overhead of $993,000, of which $385,500 will be incurred in Cutting and the remainder will be incurred in Assembly. Budgeted direct labor and machine hours are as follows: Cutting Assembly Budgeted direct labor hours 27,000 3,000 Budgeted machine hours 2,100 65,800 Two products made by Red River are the RW22SKI and the SD45ROW. The following cost and production time information on these items has been gathered: RW22SKI SD45ROW Direct material $34.85 $19.57 Direct labor rate in Cutting $20.00 $20.00 Direct labor rate in Assembly $8.00 $8.00 Direct labor hours in Cutting 6.00 4.80 Direct labor hours in Assembly 0.03 0.05 Machine hours in Cutting 0.06 0.15 Machine hours in Assembly 5.90 9.30 a. What is the plantwide predetermined…
LO.1 & LO.3 (Plant vs. departmental OH rates) Red River Farm Machine makes a wide variety' of products, all of which must be processed in the Cutting and Assembly departments. For the year 2013, Red River budgeted total overhead of $993,000, of which $385,500 will be incurred in Cutting and the remainder will be incurred in Assembly. Budgeted direct labor and machine hours are as follows: Cutting Assembly Budgeted direct labor hours 27,000 3,000 Budgeted machine hours 2,100 65,800 Two products made by Red River are the RW22SKI and the SD45ROW. The following cost and production time information on these items has been gathered: RW22SKI SD45ROW Direct material $34.85 $19.57 Direct labor rate in Cutting $20.00 $20.00 Direct labor rate in Assembly $8.00 $8.00 Direct labor hours in Cutting 6.00 4.80 Direct labor hours in Assembly 0.03 0.05 Machine hours in Cutting 0.06 0.15 Machine hours in Assembly 5.90 9.30 d. A competitor manufactures a product…
Problem 8 Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) 15,000 Correspondence (letters) 10,000 Allocated Costs $60,000 0,000 Allocation Base 2,000 hours 20,000 liners 20,000 accounts 1,000 letters The above activities are used by departments P and Q P Department Q Account inquiry (hours) Account billing (lines) Account verification (accounts) 100 hours 10,000 lines 1,000 accounts 50 letters 200 hours 7,000 lines 600 accounts 100 letters 1) How much of the account verification costs will be assigned to Department P