FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question

Provide the Ans of Question no-3 only.

Chapter 6 Homework
1. Determine the type of costs described below
a. Costs that can be traced directly to the cost object
b. Costs which change in proportion to changes in volume
c. The cost of the next best thing
d. Costs which do not change in proportion to changes in volume
e. Costs which management can influence in the short term in some capacity
f. Costs which are different between multiple alternative choices
HA260
Wilson-Sommers
g. Costs which are the result of a past decision and cannot be changed
2. Determine if each of the following is a direct or indirect cost for a hotel food
department. Then determine if it is a fixed or variable cost as well.
a. Utilities for the building-
b. Depreciation on kitchen appliances-
c. Wages for kitchen staff preparing meals-
d. Property taxes for the hotel-
e. Cost of food inventory -
Overhead
Cost Area
Admin and
General
Info and
Telecomm
Sales and
Marketing
Utilities
Prop Maint
Total
3. Using the Single Allocation Base Approach (SABA) allocate the following overhead
costs across the rooms department, the food department, and the beverages department.
Use the table below as a guide and round all calculations to the nearest whole value
(percent or dollars)
HINT: Use slide 30 in the lecture as a guide
The single allocation base will be square footage.
The total overhead costs for undistributed operating expenses are as follows:
o Admin and General $15,250
●
o Information and telecommunications systems $5,700
o
Sales and Marketing $12,000
o Utilities $9,750
o Property Maintenance $4,300
The total square footage is 60,000 square feet, each department has the following
square footage
Overhead
Costs
O Rooms Department- 30,000 square feet
o Food Department -18,000 square feet
o Beverage Department- 12,000 square feet
Percentage of Square Footage
Rooms
HA260
Wilson-Sommers
Food
Beverage
Rooms
Amount of Allocation
Food
Beverage
expand button
Transcribed Image Text:Chapter 6 Homework 1. Determine the type of costs described below a. Costs that can be traced directly to the cost object b. Costs which change in proportion to changes in volume c. The cost of the next best thing d. Costs which do not change in proportion to changes in volume e. Costs which management can influence in the short term in some capacity f. Costs which are different between multiple alternative choices HA260 Wilson-Sommers g. Costs which are the result of a past decision and cannot be changed 2. Determine if each of the following is a direct or indirect cost for a hotel food department. Then determine if it is a fixed or variable cost as well. a. Utilities for the building- b. Depreciation on kitchen appliances- c. Wages for kitchen staff preparing meals- d. Property taxes for the hotel- e. Cost of food inventory - Overhead Cost Area Admin and General Info and Telecomm Sales and Marketing Utilities Prop Maint Total 3. Using the Single Allocation Base Approach (SABA) allocate the following overhead costs across the rooms department, the food department, and the beverages department. Use the table below as a guide and round all calculations to the nearest whole value (percent or dollars) HINT: Use slide 30 in the lecture as a guide The single allocation base will be square footage. The total overhead costs for undistributed operating expenses are as follows: o Admin and General $15,250 ● o Information and telecommunications systems $5,700 o Sales and Marketing $12,000 o Utilities $9,750 o Property Maintenance $4,300 The total square footage is 60,000 square feet, each department has the following square footage Overhead Costs O Rooms Department- 30,000 square feet o Food Department -18,000 square feet o Beverage Department- 12,000 square feet Percentage of Square Footage Rooms HA260 Wilson-Sommers Food Beverage Rooms Amount of Allocation Food Beverage
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
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.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education