![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
thumb_up100%
![MC Qu. 12-42 Management of Wee Ones (WO), an operator...
Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data:
Budgeted
Revenue
Actual
Revenue
$ 477,000 $ 338,100
Center
Budgeted
Direct Costs
$ 286,000
457,600
Actual
Direct Costs
$ 321, 200
Downtown
Irvine
715,500
499, 100
394, 200
744,600
397,500
772,800
686,400
H. Beach
Totals
$1,590,000 $1,610,000
$1,430,000
$1,460,000
WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $62,000.
If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:
Multiple Choice
O
O
$20,486.
$21,696.
$31,000.
$43,359.
None of the answers is correct.](https://content.bartleby.com/qna-images/question/027a530b-cb59-4922-b3e1-9ec9990a717c/b232c693-de8c-4464-b9fe-f4645278133e/xalohue_thumbnail.png)
Transcribed Image Text:MC Qu. 12-42 Management of Wee Ones (WO), an operator...
Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data:
Budgeted
Revenue
Actual
Revenue
$ 477,000 $ 338,100
Center
Budgeted
Direct Costs
$ 286,000
457,600
Actual
Direct Costs
$ 321, 200
Downtown
Irvine
715,500
499, 100
394, 200
744,600
397,500
772,800
686,400
H. Beach
Totals
$1,590,000 $1,610,000
$1,430,000
$1,460,000
WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $62,000.
If advertising expense were allocated to centers based on actual center profitability, the amount of advertising expense allocated to the Irvine center would be closest to:
Multiple Choice
O
O
$20,486.
$21,696.
$31,000.
$43,359.
None of the answers is correct.
Expert Solution
![Check Mark](/static/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
![Blurred answer](/static/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Please do not give solution in image format thankuarrow_forwardplease help me with all 3 parts, Direct Method, Stepdown Method, and Reciprocal Method Class Examples for Cost Allocation for Multiple Support Departments Example 2 Budgeted Data: Support Departments Facility Service Personnel $100,000 $60,000 6,000 8,000 5 VC or VMOH base: sq ft base: employees 25 Operating Depts Mixing $130,000 12,000 10 Canning $170,000 10,000 20 Assume that the budgeted number of square footage and budgeted number of employees equal the actual for each, respectively. The cost driver for the Facility Service department is square footage and the cost driver for the personnel department is the number of employees 1) Allocate the two support department costs to the two operating departments using a. Direct Method b. Stepdown Method c. Reciprocal Methodarrow_forwardDon't give answer in imagearrow_forward
- hello!! please help! I think this is rightarrow_forwardQuestion A1 The following budgeted information relates to two departments in AB Ltd for the next financial control period: Machine Department Production Overhead Direct Lab. Cost Direct Lab. Hours Direct Hours Mat. Cost £ 55,000 122,000 131,000 80,000 15,000 150,000 2,000 20,000 50,000 10,000 A Required: Using the most appropriate base in each instance identify the production overhead absorption rate for: (a) (i) (ii) Department A Department B Outline clearly two advantages of using predetermined overhead absorption rates. (b)arrow_forward1arrow_forward
- Question Content Area Given the following information, determine the activity rate (rounded to the nearest cent) for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 10,000 $57,200 Inspections 23,400 $149,700 Assembly (dlh) 73,800 $394,500 a. $5.61 b. $5.35 c. $6.40 d. $5.72arrow_forwardDon't provide answers in image formatarrow_forwardView Policies Current Attempt in Progress Avalon, Inc's static budget shows $40,500 budgeted for direct materials, $54,000 budgeted for direct labor, and $13,500 budgeted for overhead. Avalon's actual direct materials were $42,000, actual direct labor was $51,000, and actual overhead was $13,800. What is the total difference between the static budget and actual, and is the difference favorable or unfavorable? O $4,800, unfavorable O $1,200, favorable O $1,200, unfavorable O $4,800, favorable Save for Later Attempts: 0 of 1 used Submit Answerarrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
![Text book image](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
![Text book image](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education