Brownley Company has one service department and two operating (production) departments. Payroll Department costs are allocated To the two operating departments in proportion to the number of employees in each. Listed below are the operating data for the current period: Direct Expenses $ 28,000 81,000 110,800 No. of Employees Department Payroll Milling Assembly The total cost of operating the Milling Department for the current period is: 45 105

Brownley Company has one service department and two operating (production) departments. Payroll Department costs are allocated To the two operating departments in proportion to the number of employees in each. Listed below are the operating data for the current period: Direct Expenses $ 28,000 81,000 110,800 No. of Employees Department Payroll Milling Assembly The total cost of operating the Milling Department for the current period is: 45 105

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sasha Company allocates the estimated $192,400 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows: Department Employees Accounting 4 Production 37 Sales 16 How much of the accounting department costs will be allocated to the production?
Riverbed Industries operates two support departments, Personnel and Accounting, and two producing departments, Fabrication and Assembly. Information on the support percentages and cost for each department is as follows: Personnel Accounting Fabrication Assembly $13217. $12200. Personnel $15626. $15547. 0% 5% 30% 65% Accounting 6% 0% 55% 39% Operating Costs $17000 9600 107500 Using the reciprocal method of allocating support costs, what is the total cost allocated to the Assembly Department from the two support departments? 101500
Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period: Department Direct Expenses Square Feet Maintenance $ 49,500 21,000 Milling 92,500 42,000 Assembly 121,400 63,000 The total cost of operating the Assembly Department for the current period is:
Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period: Department Direct Expenses Square FeetMaintenance $ 25,500 Milling 76,500 10,000 Assembly 105,400 15,000 The total cost of operating the Assembly Department for the current period is?
Flint Industries operates two support departments, Personnel and Accounting, and two producing departments, Fabrication and Assembly. Information on the support percentages and cost for each department is as follows: Personnel Accounting Fabrication Assembly Personnel O $12262. O $12453. O $11368. O $12378. 0% 10% 35% 55% Accounting 6% 0% 55% 39% Operating Costs $16000 10200 108500 100000 Using the reciprocal method of allocating support costs, what is the total cost allocated to the Fabrication Department from the two support departments?
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Cordner Corporation has two production departments, P1 and P2, and two service departments, S1 and S2. Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $ 148,000 0.70 0.10 0.20 S2 $ 179,000 0.20 0.30 0.50 P1 $ 209,000 P2 $ 148,000 Under the step method of cost allocation, the amount of costs allocated from S2 to P2 would be: Note: Do not round intermediate calculations.