ABD Corporation operates sales, administrative, and printing activities from a facility in the South. It prints and sells a variety of products. The following selected costs relate to the firm's acivities and particularly to the factory's Printing Department. 1 Production paper used in Printing Department 2 Hourly wages of production personnel in Printing Department 3 Factory property taxes and insurance 4 Supplies used which changes with printing volume in Printing Department 5 Contract signed by Printing Department manager for an annual maintenance fee on special machinery 6 Equipment depreciation in Printing Department 7 Building depreciation 8 Sales commissions 9 Advertising contract costs for a special program 10 Annual computer staff; uses the same staff level all year - half for factory operations, including the Printing Department, and half for administrative work Required: Based on reasonable assumptions about ABD Corporation, classifiy each cost as: . variable or fixed cost direct or indirect cost . product cost or period cost

ABD Corporation operates sales, administrative, and printing activities from a facility in the South. It prints and sells a variety of products. The following selected costs relate to the firm's acivities and particularly to the factory's Printing Department. 1 Production paper used in Printing Department 2 Hourly wages of production personnel in Printing Department 3 Factory property taxes and insurance 4 Supplies used which changes with printing volume in Printing Department 5 Contract signed by Printing Department manager for an annual maintenance fee on special machinery 6 Equipment depreciation in Printing Department 7 Building depreciation 8 Sales commissions 9 Advertising contract costs for a special program 10 Annual computer staff; uses the same staff level all year - half for factory operations, including the Printing Department, and half for administrative work Required: Based on reasonable assumptions about ABD Corporation, classifiy each cost as: . variable or fixed cost direct or indirect cost . product cost or period cost

Name: ABD Corporation operates sales, administrative, and printing activiti
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Description: ABD Corporation operates sales, administrative, and printing activities from a facility inthe South. It prints and sells a variety of products. The following selected costs relateto the firm's acivities and particularly to the factory's Printing Dep

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 14E: Vargas, Inc., produces industrial machinery. Vargas has a machining department and a group of direct...

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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.
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.
University Printers has two service departments, Maintenance and Personnel, and two operating departments, Printing and Developing. Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period. Maintenance Personnel Printing Developing Machine-hours 1,000 1,000 3,000 2,000 $10,000 Labor-hours. 500 500 Department direct costs. $5,000 $12,000 $15,000 Required Use the direct method to allocate these service department costs to the operating departments.
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Machine-hours Labor-hours Department direct costs Personnel 1,200 Printing 1,600 400 Deve loping 3,200 2,000 $10,500 600 $2,100 $12,000 $13,600 Required: Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance Personnel 斯 0. 2. 0. Total costs allocated %24
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Printing 1,300 Developing 3,900 3,100 $11,600 Personnel Machine-hours 1,300 006 $15,200 Labor-hours 900 Department direct costs $3,600 $13,600 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance allocation Personnel allocation Total costs allocated 0 $ 0 $
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Printing 1,600 Maintenance Developing 4,800 3,300 $12,900 Personnel Machine-hours 1,600 Labor-hours 700 700 Department direct costs $4,400 $14,400 $15,500 Required: Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Maintenance Personnel Printing Developing Service department costs Maintenance Personnel Total costs allocated $ 0 $ $ $
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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Developing Printing 1,400 Machine-hours 1,400 4,200 Labor-hours 800 800 3,200 Department 'direct costs $2,400 $12,400 $13,400 $10,700 Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Answer is not complete. Maintenance Personnel Printing Developing Service department costs $2$ 2,400 $ 12,400 O Maintenance allocation (2,400) O 600 1,800 V Personnel allocation 2,480 9,920 Total costs allocated $ 2$ 12,400 $ 3,080 $24 11,720
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University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Required: Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)