Stark Brothers Acme Dune $25,500,000 12,300,000 $13,200,000 12,000 Revenues $23,400,000 15,900,000 $18,600,000 12,900,000 $16,500,000 13,800,000 Direct costs $ 7,500,000 $ 5,700,000 4,500 $ 2,700,000 1,500 Segment margin Number of employees 6,000 Required 1. Allocate the indirect headquarters costs of Reidland Manufacturing to each of the four divisions using revenues, direct costs, segment margin, and number of employees as the allocation bases. Calculate operating margins for each division after allocating headquarters costs. 2. Which allocation base do you think the manager of the Brothers division would prefer? Explain. 3. What factors would you consider in deciding which allocation base Reidland should use? 4. Suppose the Reidland CEO decides to use direct costs as the allocation base. Should the Brothers divi- sion be closed? Why or why not?

The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 68% of media purchases. On August 1, the four advertising projects had the following accumulated costs:   August 1 Balances Vault Bank $261,000 Take Off Airlines 85,000 Sleepy Tired Hotels 208,300 Tastee Beverages 122,300 Total $676,600   During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:   Direct Labor Media Purchases Vault Bank $187,000 $717,100 Take Off…

Mello Manufacturing Company is a diversified manufacturer that manufactures three products (Alpha, Beta, and Omega) in a continuous production process. Senior management has asked the controller to conduct an activity-based costing study. The controller identified the amount of factory overhead required by the critical activities of the organization as follows: Activity Activity Cost Pool Production   $259,200   Setup   55,000   Materials handling   9,750   Inspection   60,000   Product engineering   123,200     Total   $507,150     The activity bases identified for each activity are as follows: Activity Activity Base Production Machine hours Setup Number of setups Materials handling Number of parts Inspection Number of inspection hours Product engineering Number of engineering hours   The activity-base usage quantities and units produced for the three products were determined from corporate records and are as follows:     Machine Hours   Number of…

answer in text form please (without image)

The centralized computer technology department of Lee Company has expenses of$264,000. The department has provided a total of 2,500 hours of service for the period. TheRetail Division has used 1,125 hours of computer technology service during the period, andthe Commercial Division has used 1,375 hours of computer technology service. How mucheach division should be charged for computer technology department services?

ABC Corporation has three support departments with the following costs and cost drivers: Support Department Cost Cost Driver Graphics Production $200,000 Number of copies made Accounting 500,000 Number of invoices processed Personnel 400,000 Number of employees ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information is as follows: Revenues Direct operating expenses Number of copies made Number of invoices processed Number of employees Micro Macro Super $700,000 $850,000 $650,000 50,000 70,000 100,000 20,000 30,000 50,000 Et 700 130 800 145 500 125 The support department allocation rate for the Personnel Department is O a. $3,200 O b. $2,758 O c. $1,000 O d. $3,077

Support Department Cost Allocation-Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $242,000. The total cost of the Cafeteria Department is $878,000. The number of employees and the square footage in each department are as follows: Employees Square Feet 10 18 2,400 ETT 40 2,400 50 Security Department Cafeteria Department Laser Department Forming Department Using the reciprocal services method of support department cost allocation, determine the total costs from the Security Department that should be allocated to the Cafeteria Department and to each of the production departments. Security Department cost allocation 540 3,200 Cafeteria…

Management at Lantana Inc. has decided to begin using throughput as a divisional performance measure. The Carolina Division is a job shop that carefully crafts furniture to customer specifications. The following first quarter information is available for the division: Good units started, completed, and sold 98,400 Total units completed 135,850 Total value-added hours of processing time 15,160 Total hours of divisional time 32,500 a. What is the division’s manufacturing cycle efficiency? ______% b. What is the division’s process productivity? (Round to one decimal point.) ______ units per hour c. What is the division’s process quality yield? (Round to one decimal point.) ______% d. What is the total hourly throughput? (Round to one decimal point.) ______ units per hour