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.SupplyingDepartmentEngineeringAdministrationMaintenance50%Using DepartmentEngineeringAdministration MaintenanceFabricationAssemblyӨ10%0020%020%010%40%50%20%20%60%Direct cost$28,000$217,600$25,000$195,000$50,000Required:Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediatecalculations.)EngineeringAdministrationMaintenanceTotalCostsAllocated to:FabricationAssembly$0 $0

To allocate the service department costs to the two operating departments (Fabrication and Assembly)…

Answered: Midland Resources has two production…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Barstow Manufacturing Company has two service departments — product design and engineering support, and two production departments — assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: FROM TO Design Support Assembly Finishing Design 0 % 20 % 10 % 70 % Support 10 % 0 % 30 % 60 % The direct operating costs of the departments (including both variable and fixed costs) were as follows: Design $ 110,000 Engineering Support $ 490,000 Assembly $ 440,000 Finishing $ 700,000 The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): Multiple Choice $2,009,592. $557,551. $612,959. $1,182,449. $1,127,041.
Consider the following information: Budgeted overhead Actual overhead $ 250,000 $ 240,000 Budgeted machine hours 8,000 Actual machine hours 7,800 Net income before overhead adjustment $ 75,000 Compute the ADJUSTED Net Income
A department has total conversion costs of $153,300 and total materials costs of $250,025. If the department has 36,500 equivalent units of production for materials and 73,000 equivalent units of production for conversion costs, what is the total manufacturing cost per unit? O $11.05 O $8.95 $9.50 O $2.65
The following cost allocation information is available for Moving Motors Ltd: Production departments Service departments A B Stores Maintenance Total Allocated costs R105 000 R196 500 R37 800 R50 700 R390 000 Service department usage - Stores 50% 40% - 10% - Maintenance 60% 15% 25% - If Moving Motors Ltd uses the simultaneous equation method of allocation, and Production Department A’s overhead recovery rate is R4.15 per machine hour, then the budgeted machine hours for Production Department A are (rounded): a. 43 003 machine hours b. 39 518 machine hours c. 40 000 machine hours d. 39 617 machine hours e. 43 080 machine hours
am104.
! Required information Milford Industries provides medical equipment to oncology and surgical units in major hospitals. Milford allocates indirect costs to five departments and redistributes the IDC for Quality Assurance and Engineering to the other three departments monthly. The table summarizes IDC allocation and direct labor (DL) hours for one month. Department Production Subassemblies Final assembly Quality assurance Engineering IDC Allocation, $ 30,000 20,000 10,000 6,500 22,000 Actual DL Hours 350 850 450 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Determine the indirect cost rate. The indirect cost rate is $ per hour.
A partial listing of costs incurred at Backer Corporation during November appears below: Direct materials $157,000 Direct labor Manufacturing Overhead Selling Expenses Administrative Expenses 114,000 77,000 145,000 99,000 Calculate the total conversion costs for the month: Question 6 options: $234,000 $191,000 $271,000 $244,000 $348,000
Sales (7,000 units x $400 per unit) Costs Direct materials Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment Insurance Office rent Income 1. Compute total variable cost per unit. 2 Compute total fixed costs. $ 2,800,000 280,000 490,000 175,000 65,000 140,000 154,000 210,000 35,000 20,000 36,000 1,195,000 3. Prepare a flexible budget at activity levels of 6,000 units and 8,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 6,000 units and 8,000 units. Sales Variable costs Direct materials Direct labor Sales commissions Indirect materials Shipping Total variable costs Contribution margin Fixed costs Supervisor salary Administration salaries Depreciation-Office equipment Insurance Office rent Income TEMPO COMPANY Flexible Budget Variable Amount Total Fixed per Unit Cost S 400.00 Flexible Budget for.…
The following data pertain to the current year:Budgeted manufacturing overhead: OMR 390,000Actual manufacturing overhead: OMR 440,000Budgeted machine hours: 30,000 hrs.Actual machine hours: 33,000 hrs.Overhead applied to production totaled: Select one: a. 484,000 b. 455,000 c. 429,000 d. 355,000

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