University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Maintenance Personnel Printing Developing 3,000 2,000 $29,500 Machine-hours 1,000 1,000 Labor-hours 500 500 Department direct costs $14,000 $38,500 $43,500 University Printers estimates that the variable costs in the Personnel Department total $17,750 and in the Maintenance Department variable costs total $8,100. Avoidable fixed costs in the Personnel Department are $5,60. Required: If University Printers outsources the Personnel Department functions, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.)

The Hsu Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $641,850 are allocated on the basis of machine hours. The Accounting Department's costs of $212,400 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $390,000 and $590,000, respectively.   Maintenance Accounting A B Machine hours 495 65 3,600 290 Number of employees 2 2 8 4 What is the Maintenance Department's cost allocated to Department B using the step method and assuming the Maintenance Department's costs are allocated first? Note: Do not round intermediate calculations.

Culver's Medical operates three support departments and two operating units, Surgery and ER. The support departments are allocated based on the hours used. The cost of operating the accounting (acct), administration (admin), and human resources (HR) departments is $270300, $154500, and $63000, respectively. Information on the hours used are as follows: Hours in Acct Hours in Admin Hours in HR Acct O $252768. $0. $275348. $277601. 16 8 Admin HR 48 20 4 8 Surgery ER 360 120 65 220 80 130 What are the total costs allocated to the surgery department from the supporting departments? (Do not round the intermediate calculations.)

ABC, Inc. has the following information available regarding costs at various levels of monthly production:   Production volume                                                      8,000            12,000 Direct materials                                                        $75,000         $70,000 Direct labor                                                                  56,000           80,000 Packaging materials                                                  22,000           30,000 Supervisors' salaries                                                 14,000           14,000 Depreciation on plant and equipment                    11,000           11,000 Maintenance                                                               31,000           45,000 Utilities                                                                         15,000           21,000 Insurance on plant and equipment                           2,600             2,600 Property taxes on plant and equipment…

Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table:   MaintenanceDepartment SecurityDepartment CuttingDepartment SewingDepartment Machine hours 800         2,000      7,600       10,400      Asset value $2,000         $1,470           $2,500      $5,500      Department cost $41,040         $18,240      $63,000      $81,000      Determine the total cost of each production department after allocating all support department costs to the production departments using the reciprocal services method.   CuttingDepartment   SewingDepartment Production departmentsʼ total costs

A company has two production departments, Cutting and Finishing and two service departments, Quality Control and Maintenance. Selected information on the four departments is given below: Cutting Finishing Quality Control Maintenance Direct cost P400,000 P240,000 P120,000 P180,000 No of inspection 4000 16,000 Machine hours 40,000 20,000 Quality control department costs are allocated on the basis of number of inspections. Maintenance department costs are allocated on the basis of number of machine hours Under the direct method, the amount of quality control costs allocated to the cutting department is O 424000 O 24000 96000 O 296000

McCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 clerks who process and pay supplier invoices. The total cost of their salaries is $450,000. The work distribution for the activities that they perform is as follows: Activity Percentage of Time on Each Activity Comparing source documents 10 % Resolving discrepancies 55 % Processing payment 35 % Required: Assign the cost of labor to each of the three activities in the accounts payable department. Round your answers to the nearest dollar. Activity Cost Assignment Comparing source documents Sfill in the blank 1 Resolving discrepancies $fill in the blank 2 Processing payment Sfill in the blank 3 Comparing source documents Resolving discrepancies Processing payment

Webster Company provides the following ABC costing information:   Activities Total Costs Activity-cost drivers Account inquiry hours $250,000 10,000 hours Account billing lines $125,000 5,000,000 lines Account verification accounts   $50,000 50,000 accounts Correspondence letters $ 25,000 5,000 letters Total costs $450,000     The above activities are used by Departments A and B as follows:   Department A Department B Account inquiry hours 1,000 hours 3,000 hours Account billing lines 200,000 lines 300,000 lines Account verification accounts 10,000 accounts 8,000 accounts Correspondence letters 1,000 letters 1,500 letters How much of the account inquiry cost will be assigned to Department A?   Group of answer choices   $5,000   $250,000   $75,000   $25,000

Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries and other Budget $ 261,000* Actual $ 215,000 $ 333,300 $ 231,500 *Budgeted at $18 per machine-hour. Data for the Forming and Assembly Departments follow: Percentage of Peak- Forming Department Assembly Department Total Machine-Hours Period Capacity Required Budget Actual 74% 9,700 11,700 26% 100% 4,800 3,800 14,500 15,500 The amount of fixed costs in the Maintenance Department is determined by peak-period requirements. Required: 1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? 2. How much, if any, of the Maintenance Department's actual costs should be treated as a spending variance and not charged to the…

Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows. How much of the cost of the Personnel Department is allocated to Department B using the direct method? Round to the nearest dollar. Personnel Department 200 Standard service hours used Number of employees O A. $8,000 O B. $60,000 O C. $12,632 D. $5,000 E. $15,000 Maintenance Department 200 10 20 CO Production Department A 240 40 Production Department B 160 120