FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Indigo, Reiser, and Associates, a law firm, employs ABC. The following Estimated data for each of the activity cost pools is provided for 2022: Activity Cost Pools Researching legal issues Preparing legal documents Meeting with clients Estimated Overhead $ 52,170 Total overhead applied $ 594,000 1,783,980 Estimated Use of Cost Drivers per Activity 1,110 research hours 33,000 pages 9,010 professional hours During 2022, the firm worked 870 research hours, 10,210 professional hours, and prepared 27,100 document pages. Compute the total overhead applied during the year 2022.arrow_forwardBright Weather Co. manufactures waterproof jackets. The company has two production departments: Jacket A and Jacket B, and two support departments: HR and Maintenance. The following information is available: Support Department Cost Allocation Base HR Maintenance Costs before cost allocations Number of employees Floor area (m2) Number of employees Floor area (m2) + Jacket A $200,000 25 180 Jacket B HR $250,000 $40,000 15 120 6 25 + Maintenance $12,000 15 Required: Determine the cost allocated from Maintenance to Jacket A when using the step-down method and allocating HR costs first.arrow_forward(b) Question 1 Tika Bhd has three production departments, Dept A, B, C, and service department canteen for workers. Each job must go through all the three departments. Overheads for forth coming moth is as follows: (a) Allocated Overhead Maintenance cost: Common cost Rental Depreciation Supervision costs Dept A Dept B Dept Canteen Required: Dept A Dept B Dept C Canteen Information related to all departments given as follows: Machine Machinery Floor Area hours value 20,000 RM12,000 15,000 RM10,000 5,000 RM 3,000 nil nil (m²) 5,000 RM 1,000 2,000 2,500 500 6,000 3,000 1,000 Depreciation Supervision costs Canteen cost (reallocation) 12,000 2,400 4,000 No. of Operators 30 50 20 nil Prepare an overhead analysis sheet using the apportionment method below to assign the common cost: Rental Floor area Machine value No of operators No of operators Note: All calculation must be to the nearest RM (No decimal point) Calculate departmental overhead absorption rates based on machine hours. Note: All…arrow_forward
- Nonearrow_forwardanswer fast pleasearrow_forwardService Department Charges The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. How much should each division be charged for computer technology department services? Do not round interim calculations. Retail Division $fill in the blank 1 Commercial Division $fill in the blank 2arrow_forward
- Required Information [The following Information applies to the questions displayed below.] Miami Valley Architects Inc. provides a wide range of engineering and architectural consulting services through its three branch offices in Columbus, Cincinnati, and Dayton, Ohio. The company allocates resources and bonuses to the three branches based on the net Income of the period. The results of the firm's performance for the most recent year follows ($ In thousands): Sales Less: Direct labor Columbus $ 1,500 Cincinnati $ 1,419 Dayton $ 1,067 Total $ 3,986 382 317 317 1,016 Direct materials Overhead 281 421 185 710 589 589 887 1,888 Net income $ 127 $ 92 $ (24) $ 195 Miami Valley accumulates overhead Items in one overhead pool and allocates it to the branches based on direct labor dollars. For this year, the predetermined overhead rate was $1.859 for every direct labor dollar Incurred by an office. The overhead pool includes rent, depreciation, and taxes, regardless of which office Incurred…arrow_forwardABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 number of copies made Accounting 500,000 number of invoices processed Personnel 400,000 number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows: Micro Macro Super Revenues $700,000 $850,000 $650,000 Direct operating expenses 50,000 70,000 100,000 Number of copies made 20,000 30,000 50,000 Number of invoices processed 700 800 500 Number of employees 130 145 125 The support department cost that will be allocated to the Macro Division is a.$175,000 b.$130,000 c.$305,000 d.$405,000arrow_forwardSagararrow_forward
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