ABC Corporation has three service departments with the following costs and activity base: Activity Base for Allocation Service Department Graphics Production Accounting Personnel Direct revenues Direct operating expenses Number of copies made Cost Number of invoices processed Number of employees $200,000 500,000 ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information is as follows: 400,000 Micro $700,000 $50,000 20,000 700 number of copies made number of invoices processed number of employees 130 Macro $850,000 $70,000 30,000 800 145 Super $650,000 $100,000 50,000 500 125 What is the service department charge rate for the Personnel Department? a. $3,077 b. $2,758 C.$3,200 d. $1,000
Q: Thornton Company sells lamps and other lighting fixtures. The purchasing department manager prepared…
A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…
Q: Marvel Parts, Incorporated, manufactures auto accessories. One of the company's products is a set of…
A: The variances are recorded in the production due to a difference between set standard costs and…
Q: Required: How much total revenue is estimated if the expected value approach is used?
A: Revenue from a contract with the customer consists of fixed consideration and/or variable…
Q: Compute the ending inventory under the dollar-value LIFO method at December 31, 2026. The…
A: As per LIFO method, records the most recently produced items as sold first.LIFO means. last in first…
Q: The funded status of Hilton Paneling Incorporated's defined benefit pension plan and the balances in…
A: Retirement benefit Retirement benefits are one of the important benefits being provided by employer…
Q: mary is starting her own horse racing and breeding farm in paducah, KY in the current year. She…
A: For calculate Mary's first-year depreciation deduction, you'd typically use the Modified Accelerated…
Q: A company purchased $2,200 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned…
A: ACCOUNTS PAYABLEAccounts Payable is the amount which is outstanding to supplier. Accounts Payable…
Q: Required information [The following information applies to the questions displayed below.] Oak Mart,…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Penny and Mary Hardaway are married and live in Tennessee, a community-property state. For their…
A: Taxable gift refers to the gifts on which the IRS imposes tax. The IRS considers everything a gift…
Q: Benoit Company produces three productsA, B, and C. Data concerning the three products follow (per…
A: Lets understand the basics.Contribution margin is a margin generated on sale of each and every unit.…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: Jojo Ltd. purchased a machinery on January 1, 2020. . Cost = $15,000 • Expected salvage value =…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…
Q: A company purchased $8,800 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it…
A: Merchandise Purchase -Merchandise Purchase is a transaction entered into by the organization to…
Q: Camila Company has set the following standard cost per unit for direct materials and direct labor.…
A: Direct material price variance = (SP - AP) * AQDirect material quantity variance = (SQ -…
Q: Total cost of producing 18,000 monitors $ 2,160,000 1,224,000 630,000 504,000 756,000 $ 5,274,000…
A: Avoidable costs are those costs which can be avoided if a particular product line is not continued.…
Q: Commercial Invoice: Prepare a commercial invoice with a total value exceeding $4000 USD FOR…
A: Part 1In the given question we have been asked to prepare a commercial invoice based on the details…
Q: Little League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value…
A: The stockholders' equity section is prepared by recording the paid-in share capital, treasury stock,…
Q: ust present a statement of profit or loss and other comprehensive income. Which of the following…
A: The company's financial performance over a specific time period is explained in the income…
Q: 1. Your best friend, Mario, makes the most awesome pizza in town! He’s decided to open a pizza shop…
A: Note: "Since you posted multiple questions, we will solve the first question for you. To get a…
Q: Carl purchased an apartment complex for $3.5 million on March 17 of year 1. of the purchase price,…
A: It is the amount of reduction in the value of a tangible fixed asset due to tear and wear,…
Q: The net income for 2007 of A Company before any deduction for bonus and income tax amounted to…
A: Net income is the final output of income statement. This is after deduction of all the expenses in…
Q: Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The…
A: Algebra is used in the reciprocal method of cost allocation to capture and assign 100% of service…
Q: Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources),…
A: Overhead allocation means the distribution of the overheads incurred to the relevant departments…
Q: Rose Co. sells one product and uses the last-in, first-out method to determine inventory cost.…
A: LIFO method is one of the methods of inventory valuation in which it is assumed that recent or new…
Q: Spacely Sprockets makes key components for the transportation industry using the process cost…
A: The FIFO method is used in the process costing to determine the number of equivalent units for…
Q: Chapter 10- Bond Vocabulary - Match each of the following terms with appropriate definitions: 1200…
A: A bond is a type of loan where an investor lends money to a borrower, typically a corporation or…
Q: Worldwide Credit Card Inc. uses standards to control the labour time involved in opening mail from…
A: Direct labor variance is the difference between standard direct labor cost for actual production and…
Q: Sunland Construction Company began work on a $420,000 construction contract in 2025. During 2025,…
A: Percentage completion method Under this method the revenue and expenses of long term contracts are…
Q: ! Required information [The following information applies to the questions displayed below.] AMP…
A: The goal of the MACRS tax depreciation system was to incentivize investors to purchase depreciable…
Q: Missing Amounts from Balance Sheet and Income Statement Data One item is omitted in each of the…
A: Shareholder's equity is the amount of money invested by the shareholders' in a business. It includes…
Q: Stuart Airlines is a small airline that occasionally carries overload shipments for the overnight…
A: TOTAL COSTTotal Cost is the cost incurred to manufacturing a product.Total Cost Includes Cost of Raw…
Q: Betsy's Gift Baskets sells gift baskets, on average, for $125; each gift basket costs, on average,…
A: Lets understand the basics.In traditional income statement format, gross profit is calculated by…
Q: Bank Statement MARTIN COMPANY Bank Reconciliation At May 31 Company's Books
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and…
A: Whenever an organization receives any request for special order than it is required for management…
Q: Sandhill Supply Company, a newly formed corporation, incurred the following expenditures related to…
A: Assets: These are the resources owned and controlled by business and used to produce benefits for…
Q: Tangent Controls Ltd. is a manufacturer of crash-protected event recorders that are used in railway…
A: The cash flow statement is prepared at the end of the period to know the cash position. It reflects…
Q: Bossy Company sells a single product. The company normally produces and sells 200,000 units each…
A: Net income is the amount of money earned by an entity after deducting all the expenses from the…
Q: Entry for Uncollectible Accounts Performance Bike Co. has determined that the proper balance for the…
A: The allowance for doubtful accounts is created to record the estimated bad debt expense for the…
Q: A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires…
A: Cash budget is prepared to estimate cash receipts and cash paid. It also meet whether the financing…
Q: on the information above, calculate the following: a).Initial payment due at signing. b). Total of…
A: To calculate the initial payment due at signing for a car lease, we typically need to consider…
Q: Last year, Bridgerton Co. had sales of $1,625,000 on the sale of 25,000 units, variable costs of…
A: The break-even sales are the sales where business earns no profit or loss during the period. The…
Q: count or activity is affected, select "No effect" from the dropdown list and leave the corresponding…
A: Lets understand the basics.Notes payable gets issued generally to obtain finance from outside or to…
Q: Required: 1. Compute the payback period for the advertising program. 2. Calculate the advertising…
A: The payback period is a financial metric that is used to compute the time period an investment will…
Q: Ivanhoe Desalination Ltd. needed to raise $165,000,000 of additional capital to finance the design,…
A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…
Q: Acme Materials Company manufactures and sells synthetic coatings that can withstand high…
A: Cost of quality is the cost the company has incurred beyond the some certain costs (Material, Labor,…
Q: PIM Industries Incorporated manufactures electronics components. Each unit costs $45 before the…
A: Relevant costs means those costs which can change decisions to be made in business. These costs can…
Q: The Josh Cutler Corporation provides restricted stock to certain executives. Under the plan, the…
A: The expense incurred by the employer for making certain payments to the employees is referred to as…
Q: Proceeds from Notes Payable On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a…
A: Notes is an instrument issued by the borrower to the ledgers. It acts like a promissory note issued…
Q: Jackson
A: For 2023, the total contributions you make each year to all of your traditional IRAs and Roth IRAs…
Q: 24 Chapter 10 Long-Term Assets: Fixed and Intangible Itscussion (1)estions O'Neil Office Supplies…
A: An asset is defined as a current asset or a long-term asset depending upon its use period in the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- D. ABC Company is a manufacturer of electronic parts and uses a service department charge system to charge profit centers. The following table identifies the service categories, costs and activity bases used by CCS Division. CCS Division Help desk Network center Electronic mail Local voice support Activity Base Number of calls Number of devices monitored Number of user account Number of phone extension C. d. Assumed Cost 73,600 614,250 53,550 127,238 Assumed Activity Base Quantity 2,300 calls 9,450 devices 6,300 accounts 8,775 extensions One of the profit centers for ABC Company is the Calamba Branch. Assume the following data for Calamba Branch: a. The branch has 4,000 employees of which 50% are office employees. b. All the office employees have a phone and 90% of them have a computer on the network. Ninety percent of the employees with a computer also have an email account. The average number of help desk calls for March 20X2 was .50 call per individual with a computer. e. There are…Morrell Financial Services (MFS) has three service departments: Accounting, Information Technology (IT), and Personnel. MFS also has two operating departments (Advice and Brokerage). Data on service department usage and service direct costs follow: Accounting IT Personnel Direct cost Using Department Accounting IT Personnel Advice 0% 16% 6% 23% 31% Brokerage 40% 0% 10% 29% 45% 11% 13% 0% 39% 37% $ 197,000 $ 281,000 $ 264,500 NA NA* *Not applicable for this problem. Required: Assume that Morrell Financial Services uses the reciprocal method of service department cost allocation. What is the total service department cost allocated to Advice? To Brokerage? (Hint: Use the reciprocal method spreadsheet shown in Exhibit 11.22 as a start to your analysis.) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollars. Advice Brokerage Cost AllocatedYekka Corporation has two producing department and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of services costs used by various departments are as follows: Cost Center Direct Costs Proportion of services used by: S1 S2 P1 P2 P1 90,000 P2 60,000 S1 20,000 - .80 .1 .1 S2 32,000 .20 - .50 .30 In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2. P1 P2 Machine hours 50,000 40,000 Direct labor hours 40,000 20,000 Requirements: Allocate the service department costs to operating departments and compute the factory…
- A manufacturing company has two service and two production departments. Human Resources and Machine Repair are the service departments. The production departments are Grinding and Polishing. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The human resources department services all departments of the company, and its costs are allocated using the numbers of employees within each department, while machine repair costs are allocable to Grinding and Polishing on the basis of machine hours. 1. Distribute the service department costs, using the direct method. 2. Distribute the service department costs, using the sequential distribution method, with the department servicing the greatest number of other departments distributed first.Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows: Employees Hours Department direct costs Required A Complete this question by entering your answers in the tabs below. Department costs Personnel allocation Legal allocation Total costs Costs Department costs Legal allocation Personnel allocation Total costs Personnel Required B Required C Legal Required: a. Allocate the cost of the service departments to the operating divisions using the direct method. b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. c. Allocate the cost of the service departments to the operating divisions using the reciprocal method. From Total Allocate the cost of the service departments to the operating divisions using the direct…Bell, Biv, and Devoe Company had the following activities, estimated indirect activity costs, and allocation bases: Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $85,200 2,200 Account billing (lines) $55,000 34,000 Account verification (accounts) $39,250 25,500 Correspondence (letters) $71,000 9,000 The company uses activity-based costing. The above activities are used by Departments P and Q as follows: Department P Department Q Account inquiry (hours) 400 800 Account billing (lines) 10,000 4,000 Account verification (accounts) 6,000 7,000 Correspondence (letters) 1,000 2,000 What is the cost per driver unit for the account inquiry activity? (Round all answers to two decimal places.) $1.62 $9.47 $7.89 $38.73
- The following information is departmental cost allocation with two service departments and two production departments. Percentage Service Provided to Department Cost S1 S2 P1 P2 Service 1 (S1) $ 47,000 0 % 20 % 40 % 40 % Service 2 (S2) 37,000 20 0 20 60 Production 1 (P1) 270,000 Production 2 (P2) 320,000 What is the total cost in P1 and P2 and what is the amount of service department cost allocated to P1 and P2 using the step method with S1 going first?Solomon Information Services, Incorporated, has two service departments: human resources and billing. Solomon's operating departments, organized according to the special Industry each department serves, are health care, retall, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the billing department. Other relevant information follows. Number of employees Annual cost Annual revenue Req A1 Human Resources Department Reg A2 Billing Health Care Retail Legal Services Total *This is the operating cost before allocating service department costs. Allocation Rate 20 Req B1 $ 900,000 Complete this question by entering your answers in the tabs below. x X Billing Required a. Allocate service department costs to operating departments, assuming that Solomon adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and…Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs Service department costs IT allocation HR allocation Total costs allocated $ IT IT 0 25 $ 159,000 Required: Use the direct method to allocate these service department costs to the operating departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round "Publishing" and "Binding" answers to 2 decimal places. HR 1,100 0 $ 247,500 0 $ HR Publishing 1,100 33 $ 430,000 0 $ Publishing Binding 3,300 49 $ 390,000 0.00 $ Binding 0.00
- The following information is departmental cost allocation with two service departments and two production departments. Department Cost Percentage Service Provided to S1 S2 P1 P2 Service 1 (S1) $ 46,000 0% 20% 40% 40% Service 2 (S2) 36,000 25 0 30 45 Production 1 (P1) 260,000 Production 2 (P2) 310,000 What is the amount of service department cost allocated to P1 and P2 using the direct method if the cost in P1 is changed from $260,000 to $280,000?Interdepartment Services: Direct Method Wilhelm Manufacturing Company has five operating departments, two of which are producing departments (P1 and P2) and three of which are service departments (S1, S2, and S3). All costs of the service departments are allocated to the producing departments. The following table shows the distribution of services from the service departments. Services provided Services Provided to from S1 S2 S3 P1 P2 -- 5% 25% 50% 20% 5 45 40 20 60 S1 S2 S3 The direct operating costs of the service departments are as follows: S1 $ 98,000 S2 187,000 S3 36,000 Total costs 10% Using the step method, prepare a schedule for Wilhelm Manufacturing Company allocating the service department costs to the producing departments. (Round calculations to the nearest dollar. Do not round until your final answers.) Service Departments Producing Departments P1 S2 0 $ P2 158,260 x 162,740 x $ Check 15 5 S1 S3 0Comprehensive support department allocations Management at C. Pier Press has decided to allocate costs of the paper’s two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $390,750 5 $193,550 Human resources 246,350 4 145,850 Advertising 478,900 6 381,200 Circulation 676,300 13 935,150 Totals $1,792,300 28 $1,655,750 a. Using the direct method, allocate the support department costs to the revenue-generating departments.Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%).Note: Round your final answer to the nearest whole dollar.Total…