Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Snowmobile $ 21, 190 12, 100 6,000 5,170 530 7,400 $ 52,390 ATV $ 29,200 22,200 6,900 1,070 710 8,000 $ 68,080 Actual Snowmobile $ 21,120 12,530 6,100 4,870 500 7,000 $ 52,120 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. ATV $ 30,690 23,110 6,100 1,130 670 8,000 $ 69,700

Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Snowmobile $ 21, 190 12, 100 6,000 5,170 530 7,400 $ 52,390 ATV $ 29,200 22,200 6,900 1,070 710 8,000 $ 68,080 Actual Snowmobile $ 21,120 12,530 6,100 4,870 500 7,000 $ 52,120 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. ATV $ 30,690 23,110 6,100 1,130 670 8,000 $ 69,700

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 9E: A manufacturing company has two service and two production departments. Human Resources and Machine...

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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.
Minor Co. has a job order cost system and applies overhead based on departmental rates. Service Department 1 has total budgeted costs of 168,000 for next year. Service Department 2 has total budgeted costs of 280,000 for next year. Minor allocates service department costs solely to the producing departments. Service Department 1 cost is allocated to producing departments on the basis of machine hours. Service Department 2 cost is allocated to producing departments on the basis of direct labor hours. Producing Department 1 has budgeted 8,000 machine hours and 12,000 direct labor hours. Producing Department 2 has budgeted 2,000 machine hours and 12,000 direct labor hours. What is the total cost allocation from the two service departments to Producing Department 1? a. 173,600 b. 140,000 c. 134,400 d. 274,400
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.
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.
Required information [The following information applies to the questions displayed below.] Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Controllable Costs Direct materials Direct labor Supplies used Utilities Budgeted Snowmobile $ 19,500 10,400 Prepare a responsibility accounting performance report for the ATV department. Note: Under budget amounts should be indicated by a minus sign. Responsibility Accounting Performance Report Manager, ATV Department For Year Ended December 31 10,400 3,300 360 Budget 4,300 3,300 360 5,700 $ 43,560 $ Actual ATV 27,500 20,500 5,200 900 540 6,300 $ 60,940 19,420 $ 10,660 3,170 330
Required information [The following information applies to the questions displayed below.] Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Responsibility Accounting Performance Report Manager, ATV Department For Year Ended December 31 Controllable Costs Snowmobile $ 19,990 10,900 4,800 3,850 410 6,200 $ 46,150 Budgeted $ Prepare a responsibility accounting performance report for the ATV department. (Under budget amounts should be indicated minus sign.) 19,990 $ 10,200 x 3,850 x 6,500 X Actual 19,920 11,210 Direct materials Direct labor Supplies used Utilities Totals $ 40,540 $ 60 *Red text indicates no response…
es Required information [The following information applies to the questions displayed below.] Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Totals Controllable Costs Totals Budget Snowmobile $ 20,370 11,300 5,200 4,290 450 6,600 $ 48,210 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. $ Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Budgeted Controllable Costs ATV $ 28,400 21,400 6,100 990 630 7,200 $ 64,720 0 $ Snowmobile $ 20,320 11,650 5,300 4,070 420 6,200…
Required information [The following information applies to the questions displayed below.] Arctica manufactures snowmobiles and ATVS. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget For Year Ended December 31 Direct materials Direct labor Totals Department manager salaries Supplies used Utilities Rent Totals Snowmobile $ 19,810 10,700 ▸ 4,600 3,630 Controllable Costs Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Budgeted $ 390 6,000 $ 45,130 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. 0 $ ATV $ 27,800 20,800 5,500 Actual 930 570 6,600 $ 62,200 Actual Snowmobile $ 19,720 10,990 4,700 3,470 360 5,600 $ 44,840 Over…
Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget Actual For Year Ended December 31 Direct materials Direct labor Department manager salaries Snowmobile $ 19,610 10,500 ATV $ 27,600 Snowmobile $ 19,520 ATV $ 28,930 4,400 20,600 5,300 10,770 21,350 4,500 Supplies used Utilities Rent 3,410 370 5,800 910 550 6,400 3,270 340 5,400 4,500 940 510 6,400 Totals $ 44,090 $ 61,360 $ 43,800 $ 62,630 Exercise 24-1 (Algo) Responsibility accounting performance report LO P1 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. Responsibility Accounting Performance Report Controllable Costs Manager, Snowmobile Department For Year Ended December 31…
[The following information applies to the questions displayed below.] Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget For Year Ended December 31 Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals Controllable Costs Direct materials Direct labor Supplies used Utilities Totals Responsibility Accounting Performance Report- Manager, Snowmobile Department For Year Ended December 31 $ Snowmobile $ 21,520 12,400 6,300 5,500 560 7,700 $ 53,980 Budgeted Prepare a responsibility accounting performance report for the snowmobile department. (Under budget amounts should be indicated by a minus sign.) 0 $ ATV $ 29,500 22,500 7,200 Actual 1,100 740 8,300 $ 69,340 0 $ Actual Snowmobile $ 21,420 12,860…
Required information [The following information applies to the questions displayed below.] Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. Budget A For Year Ended December 31 Snowmobile ATV Direct materials Direct labor Department manager salaries Supplies used Utilities Rent Totals $ 20,700 11,600 $ 28,700 Snowmobile $ 20,620 21,700 11,980 5,500 6,400 4,620 1,020 480 6,900 660 7,500 $,600 4,370 450 6,500 $ 49,800 $ 65,980 $ 49,520 Prepare a responsibility accounting performance report for the snowmobile department. Note: Under budget amounts should be indicated by a minus sign. Responsibility Accounting Performance Report Manager, Snowmobile Department For Year Ended December 31 Totals Controllable Costs Budgeted Actual Over (Under)…
Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report includes only those costs that the department manager can control: direct materials, direct labor, supplies used, and utilities. For Year Ended December 31 Budget Actual Snowmobile ATV Snowmobile ATV Direct materials $ 19,990 $ 28,000 $ 19,920 $ 29, 370 Direct labor 10,900 21,000 11,210 21,790 Department manager salaries 4,800 5,700 4,900 4,900 Supplies used 3,850 950 3,670 970 Utilities 410 590 380 550 Rent 6,200 6,800 5,800 6,800 Totals $ 46,150 $ 63,040 $ 45,880 $ 64,380