Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $370,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $120,000 are allocated based on the number of employees. The costs of operating departments A and B are $196,000 and $294,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows: Production Departments Budgeted maintenance- ours lumber of mployees Maintenance Personnel Department Department Budgeted costs $370,000 $120,000 $196,000 $294,000 Support Departments 200 90 870 A 15 B 1,260 670 280 680
Q: 1. Cabaret Corporation produces a single product. Data concerning the company's operations last year…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: The investment interest expense deduction is limited to the taxpayer's net investment income. O True…
A: Analysis:The statement given is true.The investment interest expense deduction is indeed limited to…
Q: Consider a piece of equipment that initially cost $8,000 and has these estimated annual expenses and…
A: The estimated amount of time that an asset will be valuable to the typical owner is called its…
Q: The following information pertains to Trenton Glass Works for the year just ended. Budgeted…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: Kojak Corporation decided to issue common stock and used the $300,000 proceeds to redeem all of its…
A: The financial ratios are used by the business entity to analyze and evaluate the relationship…
Q: Panther, Inc. wishes to estimate its ending inventory using a retail method. Information for the…
A: Inventory valuation is the process of computing the economic value of the ending inventory. It can…
Q: 3-8A LO 3 See Example 3-5 on page 3-13 Ralph Henwood was paid a salary of $64,600 during 20- by…
A: Taxes are essentially the financial contributions that individuals and businesses make to the…
Q: Kivi Service Stations is considering expanding its operations to include the greater Dubuque area.…
A: Goodwill -"Goodwill" is an intangible asset that results from a company's consistent, long-term…
Q: a. What is Donna's charitable contribution deduction? b. Assume instead that the stock had a fair…
A: a. When an appreciated security, like stock, is donated to a charitable organization and it has been…
Q: Audited financial statements are prepared by: O Management O Company Salesmen O Directors Auditors
A: An auditor is a specialist who examines and assesses financial statements and information for an…
Q: Which of the following statements accurately defines absorption in the context of accounting? A)…
A: Absorption: An accounting method that includes both the variable and fixed overhead costs of…
Q: Required information. [The following information applies to the questions displayed below] The…
A: Post Closing Trial Balance is a summary of accounts that are permanent in nature. All the ledgers…
Q: Bramble Company reports the following for the month of June. June 1 12 (a) 23 (b) 30 Units Inventory…
A: FIFO is first in first out which means inventory bought first is sold first.LIFO is last in first…
Q: Marisela acquired a brand logo from Enrique industries for $10,000. She plans to renew this…
A: In this state of affairs, Marisela plans to renew the trademark indefinitely every year for period…
Q: Capital and revenue expenditures Warner Freight Lines Co. incurred the following costs related to…
A: Capital Expenditure -Purchasing long-term tangible or permanent assets that are utilized in a…
Q: The following data pertain to Spartan Products Company: Sales revenue S 2,050,000 Materials…
A: Cost of goods manufactured -The cost of Goods Manufactured is the total cost incurred for…
Q: At year-end December 31. Chan Company estimates its bad debts as 0.40% of its annual credit sales of…
A: The net account receivables are calculated as gross account receivables less allowance for…
Q: Based on the above, what is the following: (e) Gross profit rate %
A: Gross Profit is the profit after deducting direct costs from the sales.Net profit is calculated by…
Q: Following are selected balance sheet accounts of Skysong Bros. Corp. at December 31, 2020 and 2019,…
A: PLant & eqipment is investing activitySTATEMENT OF CASH FLOW Property plant and equipment…
Q: Sam operates a small chain of pizza outlets in Fort Collins, Colorado. In November of this year, Sam…
A: The following basic information as follows under:-Sem operates small chain of piza outlets in Fort…
Q: Coronado Industries purchased the following assets and constructed a building as well. All this was…
A: Journal entries:For recording the acquisition of assets 1 & 2-AssetParticularsDebit ($)Credit…
Q: 1. Audit evidence and reliability 2. Indicative going concern factors
A: Audit evidence is the information collected and used to support audit findings. It provides a…
Q: Data for Hermann Corporation are shown below: Per Unit Percent of Sales Selling price $ 125…
A: The contribution Margin is calculated as difference between sales and variable cost. The net income…
Q: Eclipse Solar Company operates two factories. The company applies factory overhead to jobs on the…
A: Factory overhead, also known as manufacturing overhead, encompasses the indirect expenses incurred…
Q: The Office of the Auditor General is mandated to carry out audits of all public institutions in…
A: Auditing is a methodical review of financial records, statements, and activities aimed at verifying…
Q: Computing consolidated earnings per share (EPS) Assume the following facts about a parent and its…
A: Basic Earnings per Share = Earnings available to common shares ÷ Number of common shares outstanding…
Q: What is the MACRS depreciation that can be taken for 2022 for the purchase of computer equipment for…
A: According to the question given, we need to compute the depreciation expense.MACRS depreciation:The…
Q: On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of…
A: The objective of the question is to understand the tax implications of the installment sale method…
Q: Mady Entertainment Inc. showed the following equity account balances on the December 31, 2022,…
A: A dividend may be issued as a cash dividend, property dividend, or stock dividend. A stock dividend…
Q: Suppose GameStop Company uses a periodic inventory system. Details for the inventory account for the…
A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…
Q: The data below are related to a product of the Hanson Company for the year 2019. The company employs…
A: LIFO means last in first out where as FIFO means first in first out.inventory and cost of goods sold…
Q: On the 1/01/x3, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5…
A: The objective of the question is to calculate the group's investment in associate figure in its…
Q: ABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000 net working…
A: Equity denotes the residual ownership in a company's assets, remaining once liabilities are…
Q: Question 8 Your Corporation had 50,000 shares of $3 par value common stock authorized, 30,000…
A: Dividend is the share or amount of profit being provided to the shareholders in return of stock…
Q: Current Attempt in Progress On May 1, 2021, Vaughn Manufacturing issued $1630000 of 6% bonds at 104,…
A: The central idea of the question is to calculate the fair value of detachable stock warrants tied to…
Q: Acme Company's production budget for August is 18,000 units and includes the following component…
A: Performance report for flexed budget is the one which is prepared by the entity for the purpose of…
Q: Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a…
A: Variable Costing: -Product Cost under Variable costing includes direct material cost, direct labour…
Q: Quill Corp. vs. North Dakota. and South Dakota vs. Wayfair, do you agree with these cases and why
A: Quill Corp. vs. North Dakota (1992): The U.S. Supreme Court ruled that a state could not collect…
Q: Alpha Company and Beta, Inc. are both manufacturing companies that use various equipment in their…
A: In the case of lack of commercial substance, the company will not be able to record gain or loss…
Q: 19)-When a company sells used equipment for a loss, the net profit margin percentage is unaffected.…
A: Fixed assets are those assets which are being held in business for longer period of time. Regular…
Q: Walsh Company manufactures and sells one product. The following information pertains to each of the…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Calculate the following ratios from the income statement and balance sheet all are required…
A: The question is related to short term solvency and Turnover or Efficiency Ratios.
Q: Nicanor made the following donations to his children in 2021: To Jose – Agricultural land in…
A: In Philippine Donor’s tax for each calendar year shall be six percent (6%) computed on the basis of…
Q: Taxation Naga Tiddug applied and was hired as a cashier in Bagsakan Corporation. After saving enough…
A: Since you have posted a question with multiple sub-parts, we will provide the solution only to the…
Q: Byron Company has five products in its inventory and uses the FIFO cost flow assumption. Specific…
A: NRV is calculated by deducting the projected cost of disposal from the product's selling price. This…
Q: 7. Compute Working Capital: a. 60,000 b. 50,000 c. 55,000 d. 100,000 e. 10,000 3. Compute Current…
A: Ratio Analysis -When comparing one business to another in the same sector or industry, ratio…
Q: Ortiz & CP signed a contract to priovide EverFresh Bakery with an ingredint weighing system for a…
A: Performance obligation:- A performance obligation is a promise made by the seller to the customer…
Q: Kendrick Corporation issued $660,000 of 7%, 10-year bonds payable on March 31, 2019. The market…
A: Issue price of the bond:Par value of the bond = $660,000Market interest rate = 9% per annum (or)…
Q: Unfavorable Materials Efficiency Variance, write 3 to 5 causes, implications, effects, and/or…
A: The objective of this question is to identify the potential causes, implications, effects, or…
Q: Sales (S) Cost of Good Sold (COGS) Gross Profit (GP) Year 1 $ 614,405.00 $ 385,101.00 $ 229,304.00…
A: Gross profit percentage is calculated by dividing gross profit by sales revenue. The markup…
Step by step
Solved in 3 steps
- 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.A manufacturing company has two service and two production departments. Building Maintenance and Factory Office are the service departments. The production departments are Assembly and Machining. The following data have been estimated for next years operations: The direct charges identified with each of the departments are as follows: The building maintenance department services all departments of the company, and its costs are allocated using floor space occupied, while factory office costs are allocable to Assembly and Machining on the basis of direct labor 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.Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)
- A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had sales and variable costs of 500,000 and 225,000, respectively, and Seaside had sales and variable costs of 800,000 and 475,000, respectively. Salem had direct fixed production and administrative expenses of 60,000 and 35,000, respectively, and Seaside had direct fixed production and administrative expenses of 80,000 and 45,000, respectively. Fixed costs that were common to both divisions and couldnt be allocated to the divisions in any meaningful way were selling, 33,000, and administration, 27,000. Prepare a segmented income statement by division for March.Your Companey has two service departments – Personnel and Maintenance. The Maintenance Department's costs of $160,000 are allocated on the basis of standard hours used. The Personnel Department's costs of $40,000 are allocated based on the number of employees. The costs of the operating Departments A and B are $80,000 and $120,000, respectively. Data on standard service hours and number of employees are as follows: Standard Service Maintenance Dept. Personnel Dept. Production Depts. A B Hours used - 400 480 320 Number of Employees 20 - 80 240 What is the cost of the Maintenance Department allocated to Department B using the direct method? What is the cost of the…
- 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?Western Services has three service departments: Information Systems (IS), Personnel, and Administration. There are two operating departments: Residential and Commercial. A summary of costs and other data for each department prior to allocation of service department costs for the latest period follows: Department Information Systems (IS) Personnel Administration IS 170 115 3,900 Number of IS service tickets Number of employees Square footage occupied The costs of the service departments and the allocation basis for each department follow. Direct Cost $ 33,000 40,000 36,700 Personnel 200 120 8,000 Administration Residential Commercial 155 1,410 107 138 3,800 16,100 Allocation Base IS service tickets Employees Square footage occupied. 940 162 69,500 Required: a. Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems (IS) Department costs will be allocated to the Commercial Department? b. Assume the…
- Expo manufacturing has two production departments and two support departments. The number of employees for each department is as follows: $35,378 O $28,940 Human Resources Accounting Machining Producing Assembly Producing Human Resources shows a budget of $21,000 and accounting, $98,000, for the coming year. Support department costs are allocated on the basis of the number of employees. How much in total support costs would be allocated to assembly, using the step method? The Accounting department is allocated first. $119,000 $34,867 5 10 520 220Freezo Proprietary Limited has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of 12,163 are allocated on the basis of standard service used. The Personnel Department costs of 3,745 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are R9 000 and R15 000, respectively. Data on standard service hours and number of employees are as follows: MD PD P1 P2 Standard service hours 100 50 325 176 Number of employees 10 20 148 101 Direct labour hours 50 50 250 250 Using the direct method, calculate the cost of the support departments allocated to Department P1.Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Supplying Department Engineering Administration Maintenance Direct cost Engineering Administration Maintenance Using Department Engineering Administration Maintenance Fabrication Total 0 10% 0 $30,000 50% 0 30% Costs $213,300 Allocated to: Fabrication 0 20% 0 $40,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Assembly 10% 50% 15% $200,000 Assembly 40% 20% 55% $50,000