am. 104. Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expectedoperation in the next quarter follow.ClientsRevenuesStaff hoursStaff costsGeneral operating costsEastside25,000$ 270,0008,100$ 99,000Required A Required BRequired:a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staffcost to allocate general operating costs.b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center?Westside6,250$ 180,0002,700$ 81,000Predetermined overhead rateComplete this question by entering your answers in the tabs below.X Answer is complete but not entirely correct.Total31,250$ 450,00010,800$ 180,000$ 270,000Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses thestaff cost to allocate general operating costs.9% of staffcost< Required ARequired B > Required:a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staffcost to allocate general operating costs.b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center?Complete this question by entering your answers in the tabs below.Required A Required BBased on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center?CenterWestsideEastside$]$X Answer is complete but not entirely correct.Surplus0x0X< Required ARequired B

PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…

Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Required A Eastside 25,000 $ 270,000 8,100 $ 99,000 Staff hours Staff costs General operating costs Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff cost to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Required B Westside 6,250 $ 180,000 2,700 $ 81,000 Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 450,000 10,800 $ 180,000 $ 270,000 Answer is complete but not entirely correct. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff cost to allocate general operating costs. % of staff cost < Required A 9 x Required B >

Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Required A Eastside 25,000 $ 270,000 8,100 $ 99,000 Staff hours Staff costs General operating costs Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff cost to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Required B Westside 6,250 $ 180,000 2,700 $ 81,000 Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 450,000 10,800 $ 180,000 $ 270,000 Answer is complete but not entirely correct. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the staff cost to allocate general operating costs. % of staff cost < Required A 9 x Required B >

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Eastside 25,000 $360,000 8,100 Westside 6,250 $ 240,000 2,700 $ 99,000 $ 108,000 Staff hours Staff costs General operating costs Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Required A Required B Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 600,000 10,800 $ 207,000 $360,000 Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your answer to 2…
A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activities for next year follows. Activity Purchasing Cleaning factory Providing utilities Activity cost pool Purchasing Factory Expected Cost $127,600 31,500 63,070 Expected Costs Compute activity rates for each of the cost pools. (Round your answers to 2 decimal places.) Expected Amount of Cost Driver Cost Driver Purchase orders Square feet Square feet 4,400 4,900 Activity Overhead Rate Expected Usage of Cost Driver 4,488 purchase orders 4,900 square feet 4,900 square feet per purchase order per square foot
OH allocation using cost driversRegis Place is a health-care facility that has been allocating its overhead costs to patients based on number of patient days. The facility’s overhead costs total $2,172,240 per year and the facility (which operates monthly at capacity) has a total of 60 beds available. (Assume a 360-day year.) The facility’s accountant is considering a new overhead allocation method using the following information: OH Cost Cost Driver (Quantity) Rooms (depreciation, cleaning, etc.) $302,400 # of rooms (25 double) 35 Laundry 90,720 # of beds 60 Nursing care 788,400 # of nurse-hours annually 43,800 Physical therapy 576,000 # of hours of rehab 8,000 General services 414,720 # of patient days ? Rooms are cleaned daily; laundry for rooms is done, on average, every other day.a. How many patient days are available at Regis Place? Answer daysb. What is the current overhead rate per patient day?Note: Round your answer to the nearest whole dollar.$Answerc.…
OH allocation using cost driversRegis Place is a health-care facility that has been allocating its overhead costs to patients based on number of patient days. The facility’s overhead costs total $2,172,240 per year and the facility (which operates monthly at capacity) has a total of 60 beds available. (Assume a 360-day year.) The facility’s accountant is considering a new overhead allocation method using the following information: OH Cost Cost Driver (Quantity) Rooms (depreciation, cleaning, etc.) $302,400 # of rooms (25 double) 35 Laundry 90,720 # of beds 60 Nursing care 788,400 # of nurse-hours annually 43,800 Physical therapy 576,000 # of hours of rehab 8,000 General services 414,720 # of patient days ? Rooms are cleaned daily; laundry for rooms is done, on average, every other day. d. Assume a patient stayed at Regis Place for six days. The patient was in a single room and required six hours of nursing care and 30 hours of physical therapy.1. What overhead…
Fulcrum Industries manufactures dining chairs and tables. The following information is available in December 2020: Dining Chairs Tables Total CostMachine setups 200 600 $48,000Inspections 250 470 $72,000Labor hours 2,600 2,400 Fulcrum is considering switching from one overhead rate based on labor hours to activity-based costing.InstructionsPerform the following analyses for these two components of overhead:a. Compute total machine setups and inspection costs assigned to each product, using a single overhead rate.b. Compute total machine setups and inspection costs assigned to each product, using activity-based costing.c. Comment on your findings.
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Direct Costs Repair $ 147,600 112, 200 48,300 90,300 Required A Required B Required: Use the step method to allocate the service costs, using the following: 0 0.6 From: Proportion of Services Used by Quality Control Fabricating a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Service department costs Repair Quality control Total costs allocated Complete this question by entering your answers in the tabs below. Repair 0.2 0 Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. Note: Amounts to be deducted should be…
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M&P Tools has three service departments that support the production area. Outlined below is the estimated overhead by department for the upcoming year. Number of Employees 2 2 1 Estimated Service Departments Receiving Repair Тol Overhead $25,000 35,000 10,000 Production Departments Assembly Bolting 25 12 The Repair Department supports the greatest number of departments, followed by the Tool Department. Overhead cost is allocated to departments based upon the number of employees. Using the step method of allocation, what would be the allocation from the repair department to the tool departmenr. а. 11, 667 b. 14,000 c. 7,000 d. 875
Assume a company's activity-based costing system Includes three activities. The following Information is avallable with respect to those activitles: Estimated Overhead Activity Cost Pol Travel Cost Expected Activity $ 150,000 $ 110,000 $ 220,000 100.000 miles driven Deliverles 2,200 customer deliverles Customer service 10,000 phone calls What is the activity rate for the Travel activity? Multiple Choice $1.50 per mile driven $15.00 per mile driven $0.15 per mile driven $1.15 per mile driven
Blue-Pool Company is an electric utility which has two service departments, Accounting and Maintenance. It also has two operating departments, Generation and Transmission. Maintenance Department costs are allocated based on maintenance hours of service. Accounting Department costs are allocated based on accounting hours of service provided. Budgeting costs and other data for the following year are as follows: Accounting Maintenance Generation Transmission Budgeted costs R100 000 R200 000 R600 000 R400 000 Maintenance hours of service 600 7 200 4 800 Accounting hours of service 500 2 000 4 500 3 500 The step method is used to allocate service department costs, with the accounting department being allocated first. Calculate the amount of accounting department costs that needs to be allocated to the generation department. A. R42 860 B. R38 000 C. R57 143 D. R45…
Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two service departments, Repair and Quality Control. Direct costs for each department and the proportion of service costs used by the various departments for the month of March follow: Department Fabricating Finishing Repair Quality Control Required A Required B Direct Costs Repair $ 136,600 102, 200 43,800 81,800 Required: Use the step method to allocate the service costs, using the following: From: a. The order of allocation starts with Repair. b. The allocations are made in the reverse order (starting with Quality Control). Service department costs Repair Quality control Total costs allocated Complete this question by entering your answers in the tabs below. $ $ Repair Proportion of Services Used by Quality Control 0 0.8 Use the step method to allocate the service costs, using the following: The order of allocation starts with Repair. Note: Amounts to be deducted should be indicated by a minus…