Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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- A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950arrow_forwardThe cost data for BC Billing Solutions for the year 2020 is as follows: A. Using the high-low method, express the company’s overtime wages as an equation wherexrepresents number of invoices processed. Assume BC has monthly fixed costs of $3,800. B. Predict the overtime wages if 9,000 invoices are processed. D. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.arrow_forwardX Associates undertake to prepare income tax returns for individuals for a fee. They use the weighted average method and actual costs for the financial reporting purposes. However, for internal reporting, they use a standard costs system. The standards, based on equivalent performance, have been established as follows : Labour per return 5 hrs @ $ 40 per hour Overhead per return 5 hrs @ $ 20 per hour For March 2018 performance, budgeted overhead is $ 98,000 for standard labour hours allowed. The following additional information pertains to the months of March 2018: Return-in-process (25% complete) 200 No. Return started in March March 1 March 31 825 Nos. Mar-31 Return-in-process (80% complete) 125 Nos. Cost Data: Mar-01 Return-in-process labour |- Overheads March 1 to 31 Labour : 4,000 hours |Overheads $12000 $5000 $1,78,000 |$90000 You are required to compute: (a) For each element, equivalent units of performance and the actual cost per equivalent unit. (b) Actual cost of…arrow_forward
- R&R Savings Bank finds that its basic transaction account, which requires a $1000 minimum balance, costs this savings bank an average of $3.25 per month in servicing costs (including labor and computer time) and $1.25 per month in overhead expenses. The savings bank also tries to build in a $0.50 per month profit margin on these accounts. Further analysis of customer accounts reveals that for each $100 above the $500 minimum in average balance maintained in its transaction accounts, R&R Savings saves about 5 percent in operating expenses with each account. (Note: If the bank saves about 5 percent in operating expenses for each $100 held in balances above the $500 minimum, then a customer maintaining an average monthly balance of $1,000 should save the bank 25 percent in operating costs) For a customer who consistently maintains an average balance of $1,200 per month, how much should the bank charge in order to protect its profit margin? 05.00 4.68 O 0.32 325arrow_forwardKindly help me Accounting questionarrow_forwardFor the year ending December 31, 2020, Cobb Company accumulates the following data for the Plastics Division which it operates as an investment center: contribution margin-$742,800 budget, $759,800 actual; controllable fixed costs-$298,400 budget, $305,300 actual. Average operating assets for the year were $2,020,000. Prepare a responsibility report for the Plastics Division beginning with contribution margin for the year ending December 31, 2020. (Round ROI to 1 decimal place, e.g. 1.5%.) COBB COMPANY Plastics Division Responsibility Report For the Year Ended December 31, 2020arrow_forward
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