FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Please Answer part 4. Part 1-3 answers Part 1 Computation of Cost Allocation Rate for each activity: Activity Costs Base usage Allocation rate Material Handling 160,000 20,000 8 Packaging 390,000 2,000 195 Quality Assurance 112,000 1,600 70 Total 662,000 Part 2 Activity Usage of All Activities: Activity Commercial Travel Total Material Handling 8700 4450 13,150 Packaging 900 300 1,200 Quality Assurance 270 370 640 Allocation of Cost basis Usage: Activity Commercial Travel Material Handling 69,600 35600 (Activity Usage * Cost Allocation Rate) (8,700 * 8) (4450 * 8) Packaging 175,500 58500 Quality Assurance 18,900 25900 Total 264,000 120000 Units Produced 3,000 20000 Cost Per Unit 88 6 Part 3 Particulars Commercial Travel Usage of…arrow_forwardSolve this helparrow_forwardA1arrow_forward
- d Required information [The following information applies to the questions displayed below.] Use the following information: Department Service 1 (S1) Service 2 (52) Production 1 (P1) Production 2 (P2) P1 P2 Total Service Department 2's Costs Cost $ 121,000 53,000 435,000 306,000 $ 915,000 3/8 x 5/8 X Percentage Service Provided to S1 0% 20 52 20% 0 What percentage of S2's costs is allocated to P1 and to P2 under the direct method? (Round your answer to the nearest fraction.) P1 30% 20 P2 50% 60arrow_forwardSagararrow_forwardMrarrow_forward
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