Arcana Ltd has two support departments (information technology and engineering) and two production departments (assembly and finishing). The budgeted costs of the information technology and engineering departments are $90,000 and $50,000, respectively. The usage of the two support departments is as follows:   User of services Information technology Engineering Information technology   5% Engineering 10%   Assembly 60% 40% Finishing 30% 55%   Using the direct method, what is the information technology department cost allocated to the assembly department?

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.   Activity Cost   Activity Base Procurement $356,700   Number of purchase orders Scheduling 245,900   Number of production orders Materials handling 481,200   Number of moves Product development 719,400   Number of engineering changes Production 1,487,000   Machine hours   Number ofPurchaseOrders Number of ProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 3,940    270       1,350  12         1,600  1,800  Tape drives 1,900    185       590  6         9,600  4,400  Wire drives 11,300    880       3,600  28         11,300  2,000  The activity rate for the materials handling cost pool is a. $184.19 per move b. $20.81 per move c. $66.09 per…

Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: Supplying Department Using Department Human Resources Legal Human Resources 0 10% 10% $ 264,500 Legal Testing Direct cost Costs Human resources Legal Testing Total Testing Global 15% 0 0 Domestic 10% 0 0 Global 25% 30% 45% 50% Required: Allocate the service department costs to the two operating departments using the reciprocal method. Note: Do not round intermediate calculations. From Allocated to: Domestic 60% 45% $ 190,000 $90,000 $538,000 $ 487,000

Consider the following data for two products of Vigano Manufacturing.  Activity Budgeted Cost Activity Driver Machine setup $ 16,000 (20 machine setups) Parts handling 12,800 (16,000 parts) Quality inspections 19,200 (100 inspections) Total budgeted overhead $ 48,000     Unit Information Product A Product B Units produced 1,600 units 320 units Direct materials cost $ 26 per unit $ 36 per unit Direct labor cost $ 46 per unit $ 56 per unit Direct labor hours 2 per unit 2.50 per unit 1. Using a plantwide overhead rate based on 4,000 direct labor hours, compute the total product cost per unit for each product.2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity rates, (b) allocate overhead cost to Product A and Product B and compute overhead cost per unit for each, and (c) compute product cost per unit for each.  Actual Activity Usage Product A…

Barstow Manufacturing Company has two service departments — product design and engineering support, and two production departments — assembly and finishing. The distribution of each service department's efforts to the other departments is shown below:   FROM TO   Design   Support   Assembly   Finishing Design 0 %   20 %   10 %   70 % Support 10 %   0 %   30 %   60 %     The direct operating costs of the departments (including both variable and fixed costs) were as follows:         Design $ 110,000 Engineering Support $ 490,000 Assembly $ 440,000 Finishing $ 700,000     The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):   Multiple Choice   $2,009,592.   $557,551.   $612,959.   $1,182,449.   $1,127,041.

hekov Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.   Support Departments Producing Departments   HumanResources GeneralFactory Fabricating Assembly Direct costs $170,000 $330,000 $114,200 $94,000 Normal activity:         Number of employees — 60 45 80 Square footage 1,500 — 6,000 14,000 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Chekov Company uses the direct method of support department cost allocation. Required: 1. Calculate the allocation ratios for the four departments using the direct method. If an amount is zero, enter "0". Round your answer to the nearest cent.   Proportion of Driver Used by   Human Resources General Factory Fabricating Assembly Human Resources fill in the blank 1 fill in the blank 2 fill in the blank 3 fill in the blank 4…

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $348,600 Number of purchase orders Scheduling 200,100 Number of production orders Materials handling 471,600 Number of moves Product development 741,200 Number of engineering changes Production 1,511,600 Machine hours Number of Number of Number Number of Number Purchase Production of Engineering Machine of Orders Orders Moves Changes Hours Units Disk drives 3,910 380 1,430 10 1,900 2,400 Tape drives 1,600 235 570 8,000 3,700 Wire drives 11,300 880 4,200 28 11,500 2,300 The activity rate for the procurement activity cost pool is Oa. $133.85 per purchase order Ob. $70.64 per purchase order Oc. S20.74 per purchase order Od. S233.18 per purchase order Previous Next Submit Test for…

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to five separate activity pools. The budgeted activity cost and activity base data by product are provided below.   Activity Cost   Activity Base Procurement $370,000   Number of purchase orders Scheduling 250,000   Number of production orders Materials handling 500,000   Number of moves Product development 730,000   Number of engineering changes Production 1,500,000   Machine hours   Number ofPurchaseOrders Number ofProductionOrders NumberofMoves Number ofEngineeringChanges MachineHours NumberofUnits Disk drives 4,000    300       1,400  10         2,000  2,000  Tape drives 4,000    150       800  10         8,000  4,000  Wire drives 12,000    800       4,000  25         10,000  2,500  The activity rate for the product development cost pool is a.$16,222 per engineering change b.$30,417 per…

Orange, Inc. has identified the following cost drivers for its expected overhead costs for the year:     Overhead  Item   Expected Cost   Cost Driver Expected Quantity     Setup costs $ 59,500   Number of setups 250     Ordering costs   49,000   Number of orders 1,500     Maintenance   138,000   Machine hours 2,000     Power   29,500   Kilowatt hours 4,000     Total Overhead $ 276,000             Total direct labor hours budgeted = 2,000 hours.   The following actual data applies to one of the products completed during the year:   Product X     Direct materials $ 6,900   Number of setups 5     Direct labor $ 4,900   Number of orders 50     Units completed   100   Machine hours 50     Direct labor hours   100   Kilowatt hours 500       If Orange, Inc. uses machine hours to allocate overhead cost, the unit product cost of Product X will be:   Multiple Choice   $117.00.   $137.00   $147.00   $167.00.   $187.00.

Fans Company has two service departments-product design and engineering support, and two production departments-assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice $631,492 Design 0% 20% $1,018.633. SERVICES PROVIDED TO $ 162,000 $ 142,000 $ 552,000 $ 842,000 Support 10% 0% The total cost accumulated in the assembly department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar. Assume that the engineering support department goes first): Assembly 30% 45% Finishing. 60% 35%