Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows: Job MP-47: Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Fabricating Fabricating 39 89 30 90 Job MP-47 Job MP-48 $ 48,658 $ Finishing Required: How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48? Note: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar. 49,205 10408 80 10 64 34

Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each department are as follows: Job MP-47: Machine-hours Labor-hours Job MP-48: Machine-hours Labor-hours Fabricating Fabricating 39 89 30 90 Job MP-47 Job MP-48 $ 48,658 $ Finishing Required: How much of the service department costs allocated to Fabricating and Finishing using the direct method should be allocated to Job MP-47? How much should be allocated to Job MP-48? Note: Round "Department rate" to 2 decimal places. Do not round other intermediate calculations. Round final answers to the nearest whole dollar. 49,205 10408 80 10 64 34

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Description: Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48, Costs are allocated tojobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours w

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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Journalizing the distribution of service department costs to production departments Required: Using your solution to P4-7, prepare journal entries for the following: The distribution of the total factory overhead of $79,400 to the individual production and service departments where it originated. The distribution of the Building Maintenance overhead to the appropriate other departments. The distribution of the Factory Office overhead to the appropriate other departments.
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 Exercise 11-25 & 11-26 (Algo) (LO 11-1) [The following information applies to the questions displayed below.] Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Proportion of Services Used by Department Fabricating Finishing Repair Quality Control Direct Costs Repair Quality Control Fabricating Finishing $ 148,600 114,200 49,200 92,000 0 0.2 0.5 0.3 0.8 0 0.1 0.1 Exercise 11-26 (Algo) Allocating Service Department Costs First to Production Departments and Then to Jobs (LO 11-1) Assume that both Fabricating and Finishing work on just two jobs during the month of March: MP-47 and MP-48. Costs are allocated to jobs based on labor-hours in Fabricating and machine-hours in Finishing. The number of labor-hours and machine-hours worked in each…
[The following information applies to the questions displayed below.] Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Direct Costs $ 133,600 96, 200 41,100 76,700 Fabricating Finishing Repair Total Allocated Costs 0 0.8 Proportion of Services Used by Quality Control 0.2 0 Fabricating Finishing Exercise 11-25 (Algo) Cost Allocation: Direct Method (LO 11-1) 0.6 0.1 Required: Compute the allocation of service department costs to producing departments using the direct method. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 0.2 0.1
Required Information [The following information applies to the questions displayed below.] Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Fabricating Finishing Direct Costs $ 143,600 Total Allocated Costs 104, 200 44,700 83,500 Repair 0 0.8 Proportion of Services Used by Quality Control 0.2 8 Fabricating Finishing 0.5 0.1 Required: Compute the allocation of service department costs to producing departments using the direct method. Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar. 0.3 0.1
O -34 Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs a. The order of allocation starts with IT. b. The order of allocation starts with HR. Required B IT HR 1,800 0 16 $ 157,000 $ 268,000 Required: Use the step method to allocate the service costs, using the following: From: Service department costs HR IT Total costs 0 Complete this question by entering your answers in the tabs below. HR Publishing 1,800 24 $430,000 Required A Use the step method to allocate the service costs, using the following: The order of allocation starts with HR. Note: Amounts to be deducted should be indicated by…
Exercise 11-29 (Algo) Cost Allocation: Direct Method (LO 11-2) 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 — 1,700 1,700 5,100 Labor-hours 500 — 500 3,500 Department direct costs $ 3,000 $ 13,000 $ 14,100 $ 11,200 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.)
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Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control, Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control From: Proportion of Services Used by Quality Direct Costs Repair Control Fabricating Finishing $ 139,600 108,200 46,500 177,150 Service department costs Repair Quality control Total Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. $ 0 0.3 Repair 0 $ Cost Allocation To: Quality Control 8.6 0.1 Fabricating 0 $ 0.1 0.6 Finishing 0 $ 0
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control From: Service department costs Repair Quality control Total Direct Costs Repair $ 132,600 94,200 40,200 242,740 Proportion of Services Used by Quality Control 0 0.3 Repair 0.3 0 Fabricating Finishing Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts. Quality Control Cost Allocation To: 0.5 0.1 0.2 0.6 Fabricating Finishing
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Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs. IT HR 0 16 1,525 0 Publishing 2,440 24 $ 152,000 $ 247,950 $ 431,000 Binding 2,135 40 $ 392,500 Woodstock Binding estimates that the variable costs in the IT Department total $112,500, and in the HR Department variable costs to $142,500. Avoidable fixed costs in the IT Department are $18,250. Required: If Woodstock Binding outsources the IT Department functions, what is the maximum it can pay an outside vendor without increasing total costs? Note: Do not round intermediate calculations. × Answer is complete but not entirely correct. Maximum…