The table below relates to a company's factory that is split into two departments; each department contains a metre to record the consumption of electricity. The following data is provided: Department Y. Area (Square Metres) Electricity Expense Allocated 30,000 $12,000 20,000 $28.000 The rent for the year is $200,000. The total amounts for rent and electricity that should be attributed to Department X & Y respectively is? Department X $120,000 $108,000 $132,000 $12,000 Department Y $80,000 $132.000 $108,000 $28,000 IV The total amounts for rent and electricity that should be attributed to Department X & Y respectively is? O a. I O b. IV O.II O d. I Next page

The table below relates to a company's factory that is split into two departments; each department contains a metre to record the consumption of electricity. The following data is provided: Department Y. Area (Square Metres) Electricity Expense Allocated 30,000 $12,000 20,000 $28.000 The rent for the year is $200,000. The total amounts for rent and electricity that should be attributed to Department X & Y respectively is? Department X $120,000 $108,000 $132,000 $12,000 Department Y $80,000 $132.000 $108,000 $28,000 IV The total amounts for rent and electricity that should be attributed to Department X & Y respectively is? O a. I O b. IV O.II O d. I Next page

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 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipment
To better match cost to revenues Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here. Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to: Maintenance Dept. 10% Utilities Dept. 20% Producing Dept. A 40% 30% Producing Dept. B 40% 60% Using the step method, how much of Lewisville's Corporation’s Utilities Department cost is allocated between Departments A and B? (order of allocation begins with Maintenance) Group of answer choices $9,900 $10,800 $12,740 $27,700 In order to better match cost with revenues, Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here. Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to: Maintenance Dept. 10% Utilities Dept. 20%…
The following data relates to departments A, B, and C of a company; machine hours: department A- 1000hours, B-1500hours, C-1200hours; floor space: department A- 20sqm, B- 15sqm, C- 25sqm. The total production overhead cost of GH¢1200000 is made up of rent- GH¢800000 and depreciation-GHC400000. The company uses the ABC system to apportion overhead cost. The total overhead cost for department A will be OA. GHC345949.5 B. GH 249549.5 OC. GH¢349549.5 OD. GHC245949.5
Required: (for peso value round off to P1.00; two decimal places for percentage) Using the direct method, allocate service department costs to producing departments and calculate the overhead rates for each producing department
The following data relates to departments A, B, and C of a company; machine hours: department A-1000hours, B- 1500hours, C-1200hours; floor space: department A- 20sqm, B- 15sqm, C- 25sqm. The total production overhead cost of GHC1200000 is made up of rent- GHC800000 and depreciation- GH¢400000. The company uses the ABC system to apportion overhead cost. The total overhead cost for department A will be OA. GHC249549.5 B. GHC245949.5 OC. GHC349549.5 D. GHC345949.5
The following data relates to departments A, B, and C of a company; machine hours: department A-1000hours, B-1500hours, C-1200hours; floor space: department A- 20sqm, B- 15sqm, C- 25sqm. The total production overhead cost of ghc1200000 is made up of rent- ghc800000 and depreciation- ghc400000. The company uses the ABC system to apportion overhead cost. The total overhead cost for department A will be A. Ghc362162.1622 B. Ghc463063.0631 C. Ghc374774.7748 D. Ghc324144.1441
Required: (for peso value round off to P1.00; two decimal places for percentage) Using the reciprocal method, allocate service department costs to producing departments and calculate the overhead rates for each producing department
1. XYZ LTD. has three production departmenst and two service dapertments. The estimated figures for a certain period are as follows: Lighting & Electricity Rent, rates and taxes Power Wages of store staff Depreciation of machinery Insurance premium Further Details Allocation bases Wattage Floor area (sq feet) Horse power of machine Capital value of machine (") Capital value of fixed assets (") No. Of employees Value of materials used (") "1 20.000 100.000 10.000 20.000 30.000 20.000 200.000 Production Departmenst Service Departments Y Z S1 2.000 1.000 1.000 10.000 10.000 5.000 1.000 1.200 800 80.000 60.000 40.000 X 5.000 20.000 2.000 100.000 120.000 100.000 120 12.000 STORE 2 1.000 5.000 20.000 80.000 60.000 40.000 66 80 10.000 8.000 6.000 You are required to apportion the cost to production-cost centres using the step method s1: NUMBER OF WORKERS S2: Materials used
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Required information The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Costs Number of employees Square feet of space occupied Hours of press time Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance $ 144,200 $ 108,150 $ 49,440 140 20,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 60 15,000 Administration $ The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Service Departments Janitorial $ 144,200 $ 108,150 $ 35 10,000 Required: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line…