Q2: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. First apportioned center will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repair hour. The allocation keys of each item are as follows: Cost Centers/Costs Production Departments Service Departments Cutting Drying 18.000 17.000 Maintenance Total Pasta Press 25.000 17.000 36.000 27.000 Gristmill Generator Infirmary Cafeteria & Repair Cost 0 60.000 0 80.000 Direct Material Direct Labor Factory Overhead Indirect Labor Utility Depreciation Total of Primary Distribution 8.000 33.366 1.500 21.700 3.000 2.700 5.800 9.000 4.866 5.000 4,800 3.900 4.100 2.400 Pasta Press Cutting Drying 394 Maintenance & Repair 100 Gristmill Generator Infirmary Cafeteria TOTAL Machine hours 640 453 410 250 2.247 Number of Workers M&R Hours kwh 575 453 433 135 70 154 1.820 264 400 160 350 600 120 400 80 450 500 1.374 2.525 350 225 Required: Do the primary allocation of depreciation cost and re-distribute the cost of service cost centers. Present the allocation on the Cost Allocation Sheet.
Q2: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. First apportioned center will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repair hour. The allocation keys of each item are as follows: Cost Centers/Costs Production Departments Service Departments Cutting Drying 18.000 17.000 Maintenance Total Pasta Press 25.000 17.000 36.000 27.000 Gristmill Generator Infirmary Cafeteria & Repair Cost 0 60.000 0 80.000 Direct Material Direct Labor Factory Overhead Indirect Labor Utility Depreciation Total of Primary Distribution 8.000 33.366 1.500 21.700 3.000 2.700 5.800 9.000 4.866 5.000 4,800 3.900 4.100 2.400 Pasta Press Cutting Drying 394 Maintenance & Repair 100 Gristmill Generator Infirmary Cafeteria TOTAL Machine hours 640 453 410 250 2.247 Number of Workers M&R Hours kwh 575 453 433 135 70 154 1.820 264 400 160 350 600 120 400 80 450 500 1.374 2.525 350 225 Required: Do the primary allocation of depreciation cost and re-distribute the cost of service cost centers. Present the allocation on the Cost Allocation Sheet.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...
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