Booker Company operates a factory with two departments, X and Y. The rent paid on the manufacturing facility would most likely be allocated to departments X and Y on the basis of: direct labor hours. machine hours. square footage occupied. units sold
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Booker Company operates a factory with two departments, X and Y. The rent paid on the manufacturing facility would most likely be allocated to departments X and Y on the basis of: direct labor hours. machine hours. square footage occupied. units sold
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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.Prism Company has two service departments: security departments and maintenance departments that give services to two producing departments: machining department and assembling department. Security department costs will be allocated using the number of employees and maintenance department costs will be allocated using direct labor hours. For calculation of predetermined rate, machine hours and direct labor hours are used for machining and assembling departments, respectively.Calculate activity rate for general factory overhead using direct labor hours. How much of the $2,496,500 manufacturing overhead would be allocated to the Delta product? How much would be allocated to the sigma product?
- Using the direct method, compute for the factory overhead rate of the D department if it apply overhead based on direct labor hours and budgeted direct labor hours for the period total to 75,000 hours. Sylvie Corporation has three production departments: K, D, and C. It also has two service departments: Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department. Department Administration Direct Costs Employees Asset Value 900,000 1,200,000 600,000 300,000 1,600,000 1,800,000 700,000 1,400,000 400,000 500,000 50 Personnel 20 K 30 D 10 C 20BTS Company has two main departments in the plant site namely Producing department (main) and the Servicing department (support). Jin is allocated based on the machine hours while Suga is allocated based on direct labor hours Under the direct method, how much is the total overhead cost of Jimin?BTS Company has two main departments in the plant site namely Producing department (main) and the Servicing department (support). Jin is allocated based on the machine hours while Suga is allocated based on direct labor hours Under the direct method, how much is the total overhead cost of JK?
- Ransom Manufacturing Company operates its three production departments within a single facility. Each department produces its own products and maintains its own production equipment. Although they share a common facility, each department is overseen by separate supervisor. Which one of the following costs is a direct cost of each department? Lease payment on facility Depreciation on the facility Plant manager salary Cost of goods soldBTS Company has two main departments in the plant site namely Producing department (main) and the Servicing department (support). Jin is allocated based on the machine hours while Suga is allocated based on direct labor hours Under the step method, how much is the total overhead cost of V?Hagy Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Data concerning the company's costs and activity-based costing system appear below: Factory utilities (total) Indirect labor (total) Distribution of Resource Consumption Across Activity Cost Pools Factory utilities Indirect labor $101,000 $ 14,000 Factory utilities Indirect labor Total Processing 0.20 0.20 Setting Up 0.40 0.30 Required: Assign overhead costs to activity cost pools using activity-based costing. Activity Cost Pools Processing Setting Up Other 0.40 0.50 Other Total
- Shalom Company uses three activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead costs are as follows: product design P40,000; machining P300,000; and material handling P100,000. The cost drivers and estimated use are as follows: Activity Cost Pools Activities Product design Number of product changes Machining Machine hours Material handling Number of set-ups X Estimated Use of Cost Driver Per Activity Amounts must be in whole numbers. Example: 88,000 or (88,000) Unit costs be in whole numbers. Example: 88 Format of percentages: 88% Words must be in capital letters. 10 150,000 100 What is the activity-based overhead rate for material handling? JHensel Manufacturing separates its manufacturing overhead costs into 2 broad categories: (1) maintenance costs and (2) utility costs. Maintenance costs average $100,000 per month, whereas utility costs average $8,000 per month. Maintenance costs are allocated to 2 activity cost pools: (1) the repair cost pool and (2) the set-up cost pool. Utility costs also are allocated to 2 activity cost pools: (1) the heating and air conditioning cost pool (HVAC) and (2) the machinery cost pool. Maintenance costs are allocated to their unique activity cost pools on the basis of the number of employees associated with each pool. Utility costs are allocated to their unique activity cost pools on the basis of kilowatt-hour (kWh) consumption. Of the company's maintenance employees, 70% engage primarily in repair activities, whereas 30% engage primarily in set-up activities. Approximately 75% of the company's kWh consumption can be traced to HVAC use, whereas 25% of its kWh consumption can be traced to…Trek, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows. Human Resources Building Maintenance. Machining Assembly Assuming use of the direct method, over how many square feet would the Building Maintenance cost be allocated (i.e., spread)? Multiple Choice O 18,000. 66,000. 48,000. 7,000 11,000 20,000 28,000 More information is needed to judge. 55,000.