Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing overhead costs: M (Support Dept) P (Support Dept) W (Weaving Dept) C (Colorizing Dept) Maintenance Personnel Weaving Colorizing Services furnished: By Maintenance (budgeted labor - hours): to Personnel to Weaving to Colorizing By Personnel (Number of employees serviced): Plant Maintenance Weaving Colorizing $340,000 $120,000 $670,000 $380,000 1,700 8,000 4,500 12 40 25

Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing overhead costs: M (Support Dept) P (Support Dept) W (Weaving Dept) C (Colorizing Dept) Maintenance Personnel Weaving Colorizing Services furnished: By Maintenance (budgeted labor - hours): to Personnel to Weaving to Colorizing By Personnel (Number of employees serviced): Plant Maintenance Weaving Colorizing $340,000 $120,000 $670,000 $380,000 1,700 8,000 4,500 12 40 25

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 8E: A manufacturing company has two service and two production departments. Building Maintenance and...

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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.
A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor 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.
Freeman Furnishings has summarized its data as shown. Direct labor hours will be used as the activity base to allocate overhead: Compute the cost of goods manufactured.
Rocks Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity.
Freeman Furnishings has summarized its data as shown: Compute the cost of goods manufactured, assuming that the overhead is allocated based on direct labor hours
Carltons Kitchens three cost pools and overhead estimates are as follows: Compare the overhead allocation using: A. The traditional allocation method B. The activity-based costing method (Hint: the traditional method uses machine hours as the allocation base.)
Cynthia Rogers, the cost accountant for Sanford Manufacturing, is preparing a management report that must include an allocation of overhead. The budgeted overhead for each department and the data for one job are as follows: Using the departmental overhead application rates, and allocating overhead on the basis of direct labor hours, overhead applied to Job 231 in the Tooling Department would be: a. 44.00. b. 197.50. c. 241.50. d. 501.00.
Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing overhead costs: M (Support Dept) P (Support Dept) W (Weaving Dept) C (Colorizing Dept) Maintenance Personnel Weaving Colorizing Services furnished: By Maintenance (budgeted labor-hours): to Personnel to Weaving to Colorizing By Personnel (Number of employees serviced): Plant Maintenance Weaving Colorizing Which of the following linear equations represents the complete reciprocated cost of the Personnel Department? A. P= $200,000 B. P = (1,100/ 13,700) M C. P= $200,000+ (1,100/ 13,700) M D. P= $330,000 $200,000 (1,100/ 13,700) M *** $330,000 $200,000 $660,000 $440,000 1,100 7,600 5,000 9 39 25
INWON PETERNULFINN Alfred owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: ← Budgeted manufacturing overhead costs: Plant Maintenance Data Processing Machining Capping PM (Support Dept) DP (Support Dept) M (Operating Dept) C (Operating Dept) Services furnished. By Plant Maintenance (budgeted labor-hours); to Data Processing to Machining to Capping By Data Processing (budgeted computer time): to Plant Maintenance to Machining to Capping What is the complete reciprocated cost of the Data Processing Department? (Do not round any intermediary calculations.) OA. $117,316 OB. $60,415 OC. $260,000 OD. $86.227 GIED $310.000 $50,000 $245.000 $130,000 3,500 5,300 8.000 600 4,100 650
Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing overhead costs: Plant Maintenance Data Processing Machining Capping PM (Support Dept) DP (Support Dept) M (Operating Dept) C (Operating Dept) Services furnished: By Plant Maintenance (budgeted labor - hours): to Data Processing to Machining to Capping By Data Processing (budgeted computer time): to Plant Maintenance to Machining to Capping What is the complete reciprocated cost of the Plant Maintenance OA. $420,000 B. $344,026 OC. $349,666 OD. $353,590 $320,000 $100,000 $245,000 $145,000 3,400 5,800 8,000 800 4,050 750 (Do not round any intermediary calculations.)
All applicable Exercises are available with McGraw-Hill’s Connect™Accounting.Cost classifications For each of the following costs, check the column(s) that most likely apply:Cost Variable FixedWages of assembly-line workersDepreciation—plant equipmentGlue and threadShipping costsRaw materials handling costsSalary of public relations managerProduction run setup costsPlant utilitiesElectricity cost of retail storesResearch and development expense
Eisenhower Services, Inc., a management consulting firm, has been using a single predetermined overhead allocation rate with direct labor hours as the allocation pase to allocate overhead costs. The president of Eisenhower decided to develop an ABC system to more accurately allocate the indirect costs. She identified two activities related to the total indirect costs-travel and information technology (IT) support. The other relevant details are given below: Estimated quantity of allocation base Activity Allocation base Estimated costs 1,800 miles 7,400 DLH. Travel $10,000 72,000 $82,000 Miles driven IT Support Direct labor hours Total During the current month, Eisenhower's consultants spent 240 labor hours for Miller, Inc. The job required the professionals to travel 360 miles in total. Direct Labor i billed at $55 per hour. Determine the total cost of the consulting job using the ABC system. (Round any intermediate calculations to the nearest cent and your final answer to thé nearest…