Stoltz Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Data Processing and Personnel, and two operating departments, Assembly and Finishing. Service Department Data Processing $ 54,365 Personnel $ 34,560 Operating Department Assembly Finishing $ 314,500 $ 677,630 Departmental costs Computer workstations Employees 53 35 68 63 47 30 75 60 Data Processing Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total amount of Data Processing Department cost allocated to the two operating departments is closest to: Multiple Choice $54,365 $26,145 $19.200 $28,220
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- Stoltz Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Data Processing and Personnel, and two operating departments, Assembly and Finishing. Service Department Data Processing $ 26,488 Operating Department Assembly $ 188,980 Finishing $ 506,960 Personnel $ 18,630 Departmental costs Computer workstations Employees 37 12 45 41 35 11 46 35 Data Processing Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total amount of Data Processing Department cost allocated to the two operating departments is closest to: Multiple Choice $23,245 $26,488 $61,567 $16,874Lewis Corporation has two service departments: Data Processing and Administration/Personnel. The company also has three divisions: X, Y, and Z. Data Processing costs are allocated based on hours of use and Administration/Personnel costs are allocated based on number of employees. Department Direct Costs Employees Hours of use Administration/ Personnel $400,000 10 3,300 Data Processing 850,000 5 1,100 X. 450,000 30 1,800 300.000 15 2,200 550.000 25 4,500 Assume that Data Processing provides more service than Administration/Personnel. Refer to Lewis Corporation. Assume that Data Processing costs have been allocated and the balance in Administration is $600,000. Using the step method, what amount is allocated to Z? Select one: a. $214,286 b. $200,000 c. $225,000 d. $112,500Thornton Corporation's computer services department assists two operating departments in using the company's information system effectively. The annual cost of computer services is $626,200. The production department employs 37 employees, and the sales department employs 25 employees. Thornton uses the number of employees as the cost driver for allocating the cost of computer services to operating departments. Required Allocate the cost of computer services to operating departments. Department Allocated Cost Production Sales
- 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…Koehl Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Administrative and Facilities, and two operating departments, Assembly and Wholesaling. Service Departments Operating Department Assembly wholesaling $ 185,580 Administrative Facilities $ 19,440 $ 71,340 $ 392,950 Departmental costs Employee hours Space occupied 2,000 1,000 14,000 2,000 4,000 22,000 2,000 39,000 Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied. The total Wholesaling Department cost after the allocations of service department costs is closest to: Multiple Choice $403.990 $396,430 $403,642 $402,601Extreme Manufacturing Company provides the following ABC costing information:ActivitiesTotal CostsActivity - cost driversAccount inquiry$390, 00013, 000 hoursAccount billing$ 275,0005, 000, 000 linesAccount verification accounts$130, 50060, 000 accountsCorrespondence letters $22, 0004, 000 lettersTotal costs$817,500 The above activities are used by Departments A and B (among other departments) as follows: Department ADepartment BAccount inquiry hours2, 500 hours4, 000 hoursAccount billing lines800, 000 lines650, 000 linesAccount verification accounts9, 000 accounts7, 000 accountsCorrespondence letters2, 000 letters2, 400 letters How much of correspondence costs will be assigned to Department A ? Question 12 Select one:A. $49, 500B. $11, 242C. $11,000D. $22,000
- . Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Allocated Costs Allocation Base $60,000 $30,000 $15,000 $10,000 2,000 hours 20,000 lines 20,000 accounts 1,000 letters The above activities are carried out at two of their regional offices. Northeast Office Midwest Office Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) 100 hours 10,000 lines 1,000 accounts 50 letters 200 hours 7,000 lines 600 accounts 100 letters How much of the account verification costs will be assigned to the Northeast Office?Renata Company has four departments: Materials, Personnel, Manufacturing, and Packaging. Information follows. Department Materials Personnel Manufacturing Packaging Employees Square Feet Asset Values $ 7,900 4,740 45,820 20,540 $ 79,000 38 19 76 57 64,750 9,250 92,500 18,500 Total 190 185,000 The four departments share the following indirect expenses for supervision, utilities, and insurance according to their allocation bases. Indirect Expense Supervision Utilities Cost Allocation Base $ 84,400 Number of employees 69,000 Square feet occupied 32,000 Asset values $ 185,400 Insurance Total Allocate each of the three indirect expenses to the four departments. Supervision Cost to be Allocated Allocation Base Percent of Allocation Base Allocated Cost expenses Department Numerator Denominator % of Total Materials Personnel Manufacturing Packaging Totals Cost to be Allocated Utilities Allocation Base Percent of Allocation Base Allocated Cost Department Numerator Denominator % of Total…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
- Assume a service company has implemented an activity-based costing system with five activities as shown below: Activity Cost Pool (Activity Measure) Customer deliveries (Number of deliveries) Manual order processing (Number of manual orders) Electronic order processing (Number of electronic orders) Line item picking (Number of line items picked) Other organization-sustaining costs (None) Total Cost Total Activity $ 400,000 $ 280,000 $ 150,000 $ 450,000 $ 300,000 8,000 deliveries 5,000 manual orders 15,000 electronic orders 375,000 line items The company serves numerous customers, two of which include Hospital A and Hospital B. The activity demands pertaining to these two customers are as follows: Activity Hospital A Hospital B Activity Measure Number of deliveries Number of manual orders Number of electronic orders Number of line items picked 8. 25 30 15 0. 115 250 How much total activity cost should be assigned to Hospital A for internal management purposes? Multiple Choice $785 <…Question 1: Support Department cost allocation Computer Horizons Ltd. manufactures computers. The company has two corporate support departments (legal and personnel) in supporting each other and two manufacturing departments, the Laptop department and the Workstation department. The overhead costs of support departments are allocated to the manufacturing departments. Legal hours are used to allocate the cost of legal department, and personnel hours are used to allocate the cost of personnel department. The budgeted overhead costs and cost allocation bases are given below: Support Departments Manufacturing Departments Legal Personnel Laptop Workstation Overhead Costs before any inter department cost allocations $9,055 $4,000 $240,000 $200,000 Support Work provided by Legal Department Legal hours 3 37 Support work provided by Personnel Department Personnel hours 40 30 200 160 Required: Report the total costs of the manufacturing departments (Laptop and Workstation) after the support…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 22 45 33 Transactions 36,000 $361,000 19,000 $945,000 76,000 Department direct costs $149,000 $3,670,000 Required: a. Allocate the cost of the service departments to the operating departments using the direct method. b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration. c. Allocate the cost of the service departments to the operating departments using the reciprocal methoc Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C Allocate the cost of the service departments to the…