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 $ 143,600 104, 200 44,700 104,890 Repair 0 0.3 Proportion of Services Used by Quality Control 0.3 0 Fabricating Finishing 0.5 0.1 0.2 0.6 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your

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 $ 143,600 104, 200 44,700 104,890 Repair 0 0.3 Proportion of Services Used by Quality Control 0.3 0 Fabricating Finishing 0.5 0.1 0.2 0.6 Required: Use the reciprocal method to allocate the service costs. (Matrix algebra is not required.) Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your

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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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.
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.
Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. The following data appear in the company records for the current period: IT tickets Employees Department direct costs a. The order of allocation starts with IT. b. The order of allocation starts with HR. IT Required A HR 1,200 0 0 16 $ 152,000 $ 249,600 Required: Use the step method to allocate the service costs, using the following: Required B Publishing 1,200 24 $430,000 Complete this question by entering your answers in the tabs below. X Answer is not complete. Use the step method to allocate the service costs, using the following: Binding Return to question 3,600 40 $ 390,000
Cebu Pacific has two operating departments, Freight and Passenger, and two service centers, maintenance and Administration. The following data are available for the period just ended: Table is below Administration is allocated first using labor hours as the basis of allocation followed by Maintenance using number of employees as the basis. 1. If the step method is used to allocate service costs, the maintenance cost allocated to Freight Department is __________. 2. If simultaneous method is used to allocate service costs, the total service costs allocated to Freight Department is _________.
The current cost accounting system charges overhead to products based on machine-hours. What unit product costs will be reported for the two products if the current cost system continues to be used? (Round intermediate calculations and "Per unit cost" answers to 2 decimal places.) 308 510 Total cost Per unit cost A consulting firm has recommended using an activity-based costing system, with the activities based on the cost pools identified by the cost accountant. What are the cost driver rates for the four cost pools identified by the cost accountant? (Round your answers to 2 decimal places.) Incoming inspection % of material dollars Production per machine-hour Machine setup per setup Shipping per unit What unit product costs will be reported for the two products if the ABC system suggested by the cost accountant’s classification of…
Quillen Company manufactures a product in a factory that has two producingdepartments, Cutting and Sewing, and two support departments, S1 and S2. The activitydriver for S1 is the number of employees, and the activity driver for S2 is the number ofmaintenance hours. The following data pertain to Quillen:REQUIRED:(a) Calculate the cost assignment ratios to be used under the reciprocal method for S1,S2, Cutting, and Sewing. Carry out your answers to four decimal places.(b) Allocate the overhead costs to the producing departments by using the reciprocalmethod.(c) What methods can managers use to allocate costs of multiple support departmentsto operating departments? Explain the difference between these methods.
Please see picture for given information and the format for the answers. Required: Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
Required information [The following information applies to the questions displayed below.] Fifth Street Publishing (FSP) was founded many years ago as a printing cooperative offering printing services to members. Most members were charitable and religious organizations. Ten years ago, FSP became a for-profit corporation, although it retained its commitment to the original member groups. It has two production departments, Member and Commercial. The Member Department handles printing jobs for nonprofit groups and Commercial serves the remaining customers. FSP is organized this way to facilitate its billing: FSP charges nonprofit customers a price equal to the full cost of the job, including allocated overhead; commercial jobs are priced based on what the market will bear. FSP has two service departments, Accounting and Computer Services (CS). Accounting costs are allocated based on number of employees, and CS costs are allocated based on computer time (hours). Selected percentage use…
Required information Exercise 9-34 and 9-35 (Algo) [The following information applies to the questions displayed below.] Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a representative quarter for the two models follow: Units produced Production runs per quarter Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection. Total overhead Standard 10,400 50 $ 30 50 Manufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection. Data on manufacturing overhead for a representative quarter follow: $ 214,500 249,600 179,400 $ 643,500 Premium 2,600 25 $ 64 75 Exercise 9-35 (algo) Activity-Based Costing (LO 9-4)
Please see attached picture for full problem, table, and format for the answers. 1. Use the direct method to allocate the service department costs to the production departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
Yalland Manufacturing Company makes two different products, M and N. The company’s two departments are named after the products; for example, Product M is made in Department M. Yalland’s accountant has identified the following annual costs associated with these two products. Identify the costs that are (1) direct costs of Department M, (2) direct costs of Department N, and (3) indirect costs. Select the appropriate cost drivers for the indirect costs and allocate these costs to Departments M and N. Determine the total estimated cost of the products made in Departments M and N. Assume that Yalland produced 2,000 units of Product M and 4,000 units of Product N during the year. If Yalland prices its products at cost plus 40 percent of cost, what price per unit must it charge for Product M and for Product N?
Rabia Company has two support departments, Human Resources and Maintenance, and two producing departments, Fabrication and Assembly The company only had mixed cost. Human Resource costs are allocated based on the number of employees, and maintenance costs are allocated based on machine hours. Predetermined overhead rates for fabrication and assembly are based on direct labor hours. Required: 1. Calculate the allocation ratios. 2. Using the direct method, allocate the costs of the Human Resources and Maintenance departments to the Fabrication and Assembly departments. Also write the final cost of both the production departments. 3. What if the Maintenance Department had 50 employees? How would that affect the allocation of Human Resources Department costs to the Fabrication and Assembly departments?