FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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.arrow_forwardConsider 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 Incomearrow_forwardA 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 $2.65arrow_forward
- am104.arrow_forward! 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.arrow_forwardA 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 $348,000arrow_forward
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