Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments' output for the year is as follows: User of Service HR Computing Deposit Loan Provider of Service HR Computing 15% 20% - 50% 50% 30% 35% The budgeted costs in the two service departments for the year are as follows: HR Computing Required: $158,000 238,000 Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round intermediate calculations.)

Tuscaloosa National Bank has two service departments, the Human Resources (HR) Department and the Computing Department. The bank has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments' output for the year is as follows: User of Service HR Computing Deposit Loan Provider of Service HR Computing 15% 20% - 50% 50% 30% 35% The budgeted costs in the two service departments for the year are as follows: HR Computing Required: $158,000 238,000 Use the direct method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments. (Do not round intermediate calculations.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The director of public works needs to distribute the indirect cost allocation of $1.2 million to the three branches around the city. She will use the information from last year to determine the rates for this year. a. Determine this year’s indirect cost rates for each branch. b. Use the rates from last year and records for this year to distribute the allocation for this year. How much of the $1.2 million is actually distributed?
Nafiz Associates is an accounting firm that provides audit, tax and accounting services. The 2021 budgeted Income statement for the firm is as follows Service revenue $200,000 Professional labor cost (direct) $60,000 Client support cost (indirect) $90,000 Operating income $50,000 The indirect costs are allocated to the service using professional labor cost as the allocation base and the target profit is 25% of the price. 1.Compute the budgeted indirect cost allocation rate
Finance
Blue-Pool Company is an electric utility which has two service departments, Accounting and Maintenance. It also has two operating departments, Generation and Transmission. Maintenance Department costs are allocated based on maintenance hours of service. Accounting Department costs are allocated based on accounting hours of service provided. Budgeting costs and other data for the following year are as follows: Accounting Maintenance Generation Transmission Budgeted costs R100 000 R200 000 R600 000 R400 000 Maintenance hours of service 600 7 200 4 800 Accounting hours of service 500 2 000 4 500 3 500 The step method is used to allocate service department costs, with the accounting department being allocated first. Calculate the amount of accounting department costs that needs to be allocated to the generation department. A. R42 860 B. R38 000 C. R57 143 D. R45…
A summary of the usage of the service department services by other service departments as well as by the two producing departments is as follows: Equipment Building Production Dept. Service Cost Center Supervision Maintenance Occupancy Dept.1 Dept. 2 Supervision Equipment maint. Building occunpany 10% Direct costs in the various departments are as follows: 10% 5% 40% 45% 45% 55% 10% 35% 45% Direct Cost P 35,000 Label si S2 Department Supervision Équipment maintenance Building occupancy Production Dept. No. 1 Production Dept. No. 2 If the direct method of allocation is used, how much of the supervision departinent's eost would be allocated to the building occupancy department? (Start with Building occupancy, then Supervision) 30,000 90,000 350,000 450,000 S3 PI P2 а. 0 b. P1,750 с. Р3,500 d. P5,250
A. The South Department of ABC Corporation is a cost center. The budget for the month of March 20X2 is as follows: Sales salaries 406,725 System support salaries 222, 502 Customer relation salaries 75,975 Accounting salaries 48,345 Depreciation of plant and equipment 45,700 Repairs and maintenance 134,200 Insurance and property taxes 20,245 During March 20X2 the following costs were incurred by South Department: Sales salaries 406,205 System support salaries 222, 450 Customer relation salaries 80,120 Accounting salaries 48,245 Depreciation of plant and equipment 45,700 Repairs and maintenance 138,950 Insurance and property taxes 20,500 REQUIRED: Prepare a performance report for the manager of South Dept for March 20x2. Explain which costs the manager might be expected to request additional reports.
The ken berhad(KB) and its subunits must prepare budgets yearly. One of KB subunit is Island Ice Cream (IIC), a functioning producer of dairy products and famous for its delicious ice cream. Assume that IIC prepares monthly cash budgets. Relevant data from assumed operating budgets for 2017 are as follows: January February RM BM Sales 460,000 412,000 Direct materials purchases 185,000 210,000 Direct labour 70,000 85,000 Manufacturing overhead 50,000 65,000 Selling and administrative expenses 85,000 95,000 IIC sells its ice cream in university's shops located in şelanger. Collections are expected to be 75% in the month of sale and 25% in the month following sale. IIC pays 60% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. Additional information: i. Sales: December 2018 was RM320,000 ii. Purchases of direct materials: December 2018 was RM175,000 ii. Other…
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and document services for three departments in the Minneapolis office. The following budget has been prepared for the year. Available capacity 8,030,000 pages Budgeted usage: Software Development 1,630,000 pages Training 3,333,000 pages Management 2,127,000 pages Cost equation $310,000 + $0.02 per page If DCC uses a dual-rate for allocating its costs, how much cost will be allocated to the Management Department, assuming the Management Department actually made 2,130,000 copies during the year? Multiple Choice $84,670. $86,790. $86,275. $135,600.
Perfect Parties, Inc. has several divisions, one of which provides birthday parties at their facility, and has provided the actual and planning budget results for the month of June. The Controller has asked you prepare the Birthday Party Division Budget Performance Report. Please provide me with the answers for the cells in yellow. greatly appreciate your help!
Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of these two service departments' output for the year is as follows: User of Service Library Computing Services Liberal Arts Sciences Provider of Service Computing Services 20% Library Computing Services Library 65% 35% The budgeted costs in the two service departments for the year are as follows: $1,090,000 550,000 30% 50% Required: 1. Use the step-down method to allocate Hudson Community College's service department costs to the Liberal Arts and Sciences departments. (Do not round intermediate calculations.) Allocation of Computing Service costs Allocation of Library costs Total costs allocated to each department Liberal Arts Sciences
Rahul
Akagera Finance Plc has two service departments, the Human Resources (HR) Department and the Computing Department. Akagera Finance Plc has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments’ output for the year is as follows: User of Service Provider of Service HR Computing HR 0 10% Computing 10% 0 Deposit 55% 50% Loan 35% 40% The budgeted costs in the two service departments for the year are as follows: HR $ 529,000 Computing 758,500 Required: Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments