In divisional income statements prepared for Iguana Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll checks, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $62,704, and the Purchasing Department had expenses of $31,860 for the year. The following annual data for the Residential, Commercial, and Government Contract divisions were obtained from corporate records:   Residential Commercial Government Contract Sales $666,000    $883,000   $2,026,000   Number of employees: Weekly payroll (52 weeks per year) 125    75   80   Monthly payroll 28    39   26   Number of purchase requisitions per year 2,300    1,600   1,500 Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. Round charge rate answers to nearest cent. Service department charge rates:   Payroll Department $fill in the blank 15 per payroll check   Purchasing Department $fill in the blank 16 per purchase requisition     Residential Commercial Government Contract Total Service department charges:   Payroll Department $fill in the blank 17 $fill in the blank 18 $fill in the blank 19 $fill in the blank 20   Purchasing Department $fill in the blank 21 $fill in the blank 22 $fill in the blank 23 $fill in the blank 24     Total $fill in the blank 25 $fill in the blank 26

Balding, Ltd. is composed of 5 divisions. Each division is allocated a share of the overhead of Balding to make divisional managers aware of the cost of running the corporate headquarters. The following information relates to the Metro Division: Sales $6,100,000 Variable Operating Costs $3,640,000 Traceable Fixed Operating Costs $1,560,000 Allocated Corporate Overhead $200,000 If the Metro Division is closed, 100% of the traceable fixed operating costs can be eliminated. What will be the impact on the overall profitability of Balding if the Metro Division is closed?   Select one: A. Decrease by $900,000 B. Decrease by $5,900,000 C. Decrease by $4,340,000 D. Decrease by $2,460,000 E. Decrease by $700,000

The centralized computer technology department of Crutchfield Company has costs of $982,500. The department has provided a total of 13,100 hours of service for the period. The Retail Division has used 5,900 hours of computer technology service during the period, and the Commercial Division has used 7,200 hours of computer technology service. Additional data for the two divisions is following below:   RetailDivision CommercialDivision Sales $6,320,000 $4,950,000 Cost of goods sold 3,190,000 2,220,000 Selling expenses 502,000 489,000   Determine the divisional income from operations for the Retail Division and the Commercial Division.   Crutchfield Company Divisional Income from Operations   RetailDivision CommercialDivision Sales  $fill in the blank 2 $fill in the blank 3 Cost of goods sold  fill in the blank 5 fill in the blank 6 Gross profit  $fill in the blank 8 $fill in the blank 9 Selling expenses  fill in the blank 11 fill in the blank 12 Income…

Armada Shipping is a global logistics company. The company is organized into two divisions: Contracts and Retail. The Contracts Division, which is by far the larger division, handles customers who have regular shipping requirements and have signed contracts specifying costs and schedule for up to one year. The Retail Division handles shipments for customers who have only occasional shipping requirements and pay on an as-used basis. Billing for all customers is handled by the corporate Accounts Receivable Department. Accounts Receivable performs two major activities: billing and accounts. Billing refers to preparing and sending the bills as well as processing the payments. Accounts refers to establishing accounts, ensuring credit status, following up on collection, and so on. The costs of the Accounts Receivable Department are allocated to the two divisions based on the number of bills prepared. The manager of the Contracts Division has complained that the allocated costs from Accounts…

National Bank has several departments that occupy both floors of a two-story building. The departmental accounting system has a single account, Building Occupancy Cost, in its ledger. The types and amounts of occupancy costs recorded in this account for the current period follow.    Depreciation—Building $ 18,000   Interest—Building mortgage   27,000   Taxes—Building and land   9,000   Gas (heating) expense   3,000   Lighting expense   3,000   Maintenance expense   6,000   Total occupancy cost $ 66,000      The building has 4,000 square feet on each floor. In prior periods, the accounting manager merely divided the $66,000 occupancy cost by 8,000 square feet to find an average cost of $8.25 per square foot and then charged each department a building occupancy cost equal to this rate times the number of square feet that it occupied. Diane Linder manages a first-floor department that occupies 1,000 square feet, and Juan Chiro manages a second-floor department that…

Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the company allocates common costs to the divisions. During the past month, the following common costs were incurred: Computer services (85% fixed) Building occupancy 347,000 674,000 Personnel costs 174,000 Total common costs $1,195,000 The following information is available concerning various activity measures and service usages by each of the divisions: Division A Division B Area occupied (square feet) 26,900 53,800 Рayroll $436,000 $236,000 Computer time (hours) Computer storage (megabytes) 280 300 4,400 -0- Equipment value Operating profit (pre-allocations) $205,000 $255,000 $767,500 $707,500 If common computer service costs are allocated using computer time as the allocation basis, what is the computer cost allocated to Division B (rounded to the nearest whole dollar)? Multiple Choice $216,625. $187,736. $180,939. $179,483.

The centralized computer technology department of Lee Company has expenses of$264,000. The department has provided a total of 2,500 hours of service for the period. TheRetail Division has used 1,125 hours of computer technology service during the period, andthe Commercial Division has used 1,375 hours of computer technology service. How mucheach division should be charged for computer technology department services?

Interdepartment Services: Step Method O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. O'Brian's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows: Direct department cost Number of employees Gross payroll Personnel Payroll Housewares Clothing Furniture $7,300 $3,800 $12,300 $20,000 $15,650 5 Total costs $ 2 $6,100 $2,800 Payroll 0 (a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.) 12.5 X% (b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer…

Ivanhoe Company purchases $54,000 of raw materials on account, and it incurs $64,800 of factory labor costs. Supporting records show that (a) the Assembly Department used $25,920 of direct materials and $37,800 of direct labor, and (b) the Finishing Department used the remainder. Journalize the assignment of the costs to the processing departments on March 31. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Mar. 31 31 (To record materials used) (To assign factory labor to production) Debit Credit

Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 210 employees and occupies 56,400 square feet; Painting has 140 employees and occupies 37,600 square feet. The company has indirect expenses that consist of administrative expenses of $87,000 and maintenance expenses of $105,000. Administrative expenses are allocated based on the number of workers in each department and maintenance is allocated based on square footage. The amount of maintenance expenses that should be allocated to the Assembly Department for the current period is: Multiple Choice O $52,200. O $63,000. O $115,200. O $115,950. O $126,000.