Fans Company has two service departments - product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICES PROVIDED TO Support 10% 0% SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice O O The total cost accumulated in the finishing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar assume that the engineering support department goes first): OOO $1,057,333 $1.970,000. $712.667. $664,792 Design 0% 20% $980,208. $ 180,000 $ 160,000 $ 570,000 $ 860,000 Assembly 30% 45% Finishing 60% 35%

Fans Company has two service departments - product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICES PROVIDED TO Support 10% 0% SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice O O The total cost accumulated in the finishing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar assume that the engineering support department goes first): OOO $1,057,333 $1.970,000. $712.667. $664,792 Design 0% 20% $980,208. $ 180,000 $ 160,000 $ 570,000 $ 860,000 Assembly 30% 45% Finishing 60% 35%

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 8E: A manufacturing company has two service and two production departments. Building Maintenance and...

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Fans Company has two service departments-product design and engineering support, and two production departments-assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT Product Design Engineering Support The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice $631,492 Design 0% 20% $1,018.633. SERVICES PROVIDED TO $ 162,000 $ 142,000 $ 552,000 $ 842,000 Support 10% 0% The total cost accumulated in the assembly department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar. Assume that the engineering support department goes first): Assembly 30% 45% Finishing. 60% 35%
Fans Company has two service departments - product design and engineering support, and two production departments assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT Product Design Engineering Support Multiple Choice $1,713,750. The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing $2,890,000. $1,176,250. Design 0% 20% $1,136,250. The total cost accumulated in the assembly department using the direct method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): $1,182,916. SERVICES PROVIDED TO Support 10% 0% $ 240,000 $ 260,000 $ 950,000 $ 1,440,000 Assembly 30% 45% Finishing 60% 35% -
Yekka Corporation has two producing department and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of services costs used by various departments are as follows: Cost Center Direct Costs Proportion of services used by: S1 S2 P1 P2 P1 90,000 P2 60,000 S1 20,000 - .80 .1 .1 S2 32,000 .20 - .50 .30 In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2. P1 P2 Machine hours 50,000 40,000 Direct labor hours 40,000 20,000 Requirements: Allocate the service department costs to operating departments and compute the factory…
Villanueva Company has two producing and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as follows: (P1, P300,000); (P2. P200,000); (S1, P100,000; S2- 25%, P1-50%, P2-25%); (S2. P40,000: S1-10%, P1-50%, P2- 40%). What is the total cost of P1if the costs of service departments are allocated using the direct method? P386,111 P370,000 O P388,889 O P377,778 O P386,666
The Merchant Manufacturing Company has two service departments - purchasing and maintenance, and two production departments - fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM Purchasing Maintenance Purchasing Maintenance Fabrication Assembly Multiple Choice The direct operating costs of the departments (including both variable and fixed costs) were as follows: O O O Purchasing Maintenance Fabrication 70 % 20 % 55 % The total cost accumulated in the assembly department using the direct method is (calculate all ratlos and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): O $123,000 45,000 99,000 75,000 $216,357. $123,600. 30 % $94,800. TO $125,643. $63,643. Assembly 10 % 15 %
Lock Company has two producing and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of service costs used by the various departments are as follows: (P1, $300,000); (P2, $200,000); (S1, $100,000; S2-25%, P1-50%, P2-25%); (S2, $40,000; S1-10%, P1-50%, P2-40%). What is the total cost of P1 if the costs of service departments are allocated using the direct method? $388,889 $386,111 $386,666 $370,000 P377,778
Fans Company has two service departments — product design and engineering support, and two production departments — assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30% 60% Engineering Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 105,000 Engineering Support $ 195,000 Assembly $ 540,000 Finishing $ 790,000 The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):
Thornton Corporation's computer services department assists two operating departments in using the company's information system effectively. The annual cost of computer services is $626,200. The production department employs 37 employees, and the sales department employs 25 employees. Thornton uses the number of employees as the cost driver for allocating the cost of computer services to operating departments. Required Allocate the cost of computer services to operating departments. Department Allocated Cost Production Sales
Lenser Company has two service departments — product design and engineering support, and two production departments — assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30% 60% Engineering Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 170,000 Engineering Support $ 190,000 Assembly $ 670,000 Finishing $ 1,020,000 The total cost accumulated in the assembly department using the direct method is: Note: Calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar. Multiple Choice $1,216,458. $2,050,000. $833,542. $793,542. $840,208.
Godo
Dolphin Company has two service departments, S1 and S2 and three production departments, P1, P2 and P3. The following data relate to Dolphin Company's allocation of service department costs: Number of Employees S1 S2 IP1 P2 P3 O $13,333 The allocation of costs from S2 to S1 would be: O $4,800 Cost O $0 80,000 40,000 100,000 800,000 1,200,000 O $10,000 S1 allocates its costs on the basis of number of employees. S2 allocates its costs on the basis of kilowatt hours. The order of allocation for Dolphin Company is S1 first and S2 second. Dolphin Company uses the direct method to allocate its service department costs. Problem 3-4 2 3 3 6 6 Kilowatt Hours 600 400 500 1,000 2,500
Hessel Corporation has two operating departments (Domestic and Global) and three service departments: Human Resources (HR), Legal, and Testing. In the most recent period, the following costs and service department usage ratios were recorded: Supplying Department Human Resources Legal Testing Direct cost From: Human Resources Legal Testing Total Human Resources Costs 10% 10% $ 264,500 $ Allocated to: Domestic Legal 0 $ 15% 0 0 $ 190,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. Note: Do not round intermediate calculations. Global Using Department Testing 0 10% 0 0 $ 90,000 Domestic 50% 60% 45% $ 541,000 Global 25% 30% 45% $ 490,000