Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembland Security departments support the production of the toys. Costs from the Janitorial Department arefeet. Costs from the Security Department are allocated based on asset value. Relevant department inforfollowing table:Square feetAsset valueJanitorialDepartment650$200$2,000MoldingSecurityDepartment DepartmentAssemblyDepartment1,600$220$1,6001,600$1,800Department cost$10,800Using the reciprocal services method of support department cost allocation, determine:4,800$2,000$12,200a. The percentage of Janitorial costs that should be allocated to the Security Department.%b. The percentage of Security costs that should be allocated to the Janitorial Department.%

Lets understand the basics.Cost of service department can be allocated using,(1) Direct method(2)…

Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assemb and Security departments support the production of the toys. Costs from the Janitorial Department are feet. Costs from the Security Department are allocated based on asset value. Relevant department info following table: Square feet Asset value Janitorial Department 650 $200 $2,000 Security Department 1,600 $220 $1,600 Molding Department Assembly Department 1,600 $1,800 Department cost $10,800 Using the reciprocal services method of support department cost allocation, determine: 4,800 $2,000 $12,200 a. The percentage of Janitorial costs that should be allocated to the Security Department. % b. The percentage of Security costs that should be allocated to the Janitorial Department. %

Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assemb and Security departments support the production of the toys. Costs from the Janitorial Department are feet. Costs from the Security Department are allocated based on asset value. Relevant department info following table: Square feet Asset value Janitorial Department 650 $200 $2,000 Security Department 1,600 $220 $1,600 Molding Department Assembly Department 1,600 $1,800 Department cost $10,800 Using the reciprocal services method of support department cost allocation, determine: 4,800 $2,000 $12,200 a. The percentage of Janitorial costs that should be allocated to the Security Department. % b. The percentage of Security costs that should be allocated to the Janitorial Department. %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter5: Support Department And Joint Cost Allocation

Section: Chapter Questions

Problem 3BE

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ervices Method Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on square feet. Costs from the Security Department are allocated based on asset value. Relevant department information is provided in the following table: Janitorial Security Molding Assembly Department Department Department Department Square feet 610 800 800 6,400 Asset value $120 $140 $880 $1,000' Department cost $2,100 $1,300 $10,900 $12,500 Using the reciprocal services method of support department cost allocation, determine: a. The percentage of Janitorial costs that should be allocated to the Security Department. % b. The percentage of Security costs that should be allocated to the Janitorial Department.
Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 6,800 11,200 Asset value $2,000 $1,450 $3,000 $5,000 Department cost $33,120 $14,720 $67,000 $81,000 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method. Cutting Sewing Department Department Production departments total costs
Support department cost allocation Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Framing production departments are supported by the Janitorial and Security departments. Janitorial costs are allocated to the production departments based on square feet, and security costs are allocated based on asset value. Information about these departments is detailed in the following table: Square feet Asset value Janitorial Department 760 $900 $5,200 Security Department 1,040 $1,240 $6,600 a. Direct cost allocation. method. b. Sequential cost allocation method. c. Reciprocal cost allocation method. d. None of the above. d X Printing Department 4,230 $12,390 $33,000 Framing Department 4,770 $8,610 $29,000 Department cost Management has experimented with different support department cost allocation methods in the past. The different allocation methods did not yield large differences of cost allocation to the production departments. 1. Determine which…
Support department cost allocation Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Framing production departments are supported by the Janitorial and Security departments. Janitorial costs are allocated to the production departments based on square feet, and security costs are allocated based on asset value. Information about these departments is detailed in the following table: JanitorialDepartment SecurityDepartment PrintingDepartment FramingDepartment Square feet 760 1,040 4,230 4,770 Asset value $900 $1,240 $12,390 $8,610 Department cost $5,200 $6,600 $33,000 $29,000 Management has experimented with different support department cost allocation methods in the past. The different allocation methods did not yield large differences of cost allocation to the production departments. 1. Determine which support department cost allocation method…
Support department cost allocation Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Framing production departments are supported by the Janitorial and Security departments. Janitorial costs are allocated to the production departments based on square feet, and security costs are allocated based on asset value. Information about these departments is detailed in the following table: JanitorialDepartment SecurityDepartment PrintingDepartment FramingDepartment Square feet 760 1,040 4,230 4,770 Asset value $900 $1,240 $12,390 $8,610 Department cost $5,200 $6,600 $33,000 $29,000 Management has experimented with different support department cost allocation methods in the past. The different allocation methods did not yield large differences of cost allocation to the production departments. 1. Determine which support department cost allocation method…
eBook Show Me How Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Machine hours Asset value Department cost Maintenance Department Security Department Cutting Department Sewing Department 800 2,000 8,400 9,600 $2,000 $29,520 $1,430 $13,120 $3,000 $67,000 $5,000 $78,000 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method. Sewing Department Cutting Department < Production departments' total costs 83,976 X 117,184 X Feedback Check My Work The reciprocal services method…
Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Machine hours Asset value Maintenance Department 800 $2,000 $36,000 Feedback Security Department 2,000 $1,670 $16,000 Cutting Department Production departments' total costs $ 63,436 X Cutting Department 7,200 $2,500 $64,000 Department cost Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method. Sewing Department $ 96,299.2 X Sewing Department 10,800 $5,500 $82,000 Check My Work The reciprocal services method considers all…
Identify activity bases From the following list of activity bases for an automobile dealership, select the base that would be most appropriate for each of these costs: (1) preparation costs (cleaning, oil, and gasoline costs) for each car received, (2) salespersons' commission of 6% of the sales price for each car sold, and (3) administrative costs for ordering cars. a. Dollar amount of cars on hand b.Dollar amount of cars ordered c. Dollar amount of cars received d.Dollar amount of cars sold e.Number of cars on hand f. Number of cars ordered g. Number of cars received h.Number of cars sold
Assume the following information in the chart: Security Dept. Cafeteria Dept. 1,000 square feet 4,000 square feet 10 employees 6 employees $100,000 cost $200,000 cost Production B Dept. 3,000 square feet 50 employees $300,000 cost Using the reciprocal services method, what is the total security costs before being allocated over to the production departments? $125,000 $110,000 $120,000 O $100,000 Production A Dept. 3,000 square feet 40 employees $400,000 cost
Support department cost allocation—reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: MaintenanceDepartment SecurityDepartment CuttingDepartment SewingDepartment Machine hours 800    2,000 7,600    10,400 Asset value $2,000    $1,380 $1,500 $6,500 Department cost $43,200    $19,200 $62,000 $84,000 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method. CuttingDepartment SewingDepartment Production departmentsʼ total costs…
Support department cost allocation—reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: MaintenanceDepartment SecurityDepartment CuttingDepartment SewingDepartment Machine hours 800    2,000 7,600    10,400 Asset value $2,000    $1,470 $2,500 $5,500 Department cost $41,760    $18,560 $68,000 $78,000 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method.
Support department cost allocation—reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: MaintenanceDepartment SecurityDepartment CuttingDepartment SewingDepartment Machine hours 800    2,000 7,200    10,800 Asset value $2,000    $1,670 $2,500 $5,500 Department cost $36,000    $16,000 $64,000 $82,000 Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method. CuttingDepartment SewingDepartment Production departmentsʼ total costs…