Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation , suppliers, and employee wages. The allocation of fixed administrative expenses among three restaurants.

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Answer 1

Question

Chapter 11B, Problem 11B.2E

1.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages.

The allocation of fixed administrative expenses among three restaurants.

2.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

The change in each restaurant’s allocated cost.

3.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

To comment: On usefulness of sales dollars as an allocation base.

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Assume a retailing company has two departments-Department A and Department B. The company's most recent contribution format income statement follows: Department A $ 350,000 120,000 230,000 140,000 Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) Multiple Choice O $(133,800) The company says that $110,000 of the fixed expenses being charged to Department B are sunk costs or allocated costs that will continue if the segment is discontinued. However, if Department B is discontinued the sales in Department A will drop by 6%. What is the financial advantage (disadvantage) of discontinuing Department B? O $(128,000) $(113,800) Total $ 800,000 320,000 480,000 400,000 $ 80,000 O $(124,000) Department B $ 450,000 200,000 250,000 260,000 $90,000 $ (10,000)

Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department’s efforts (in percentages) to the other departments is: From To S1 S2 P1 P2 S1 — 20% 30% ?% S2 20% — ? 40 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 255,000 S2 85,000 P1 69,000 P2 215,000 Required: 1. Determine the total cost of P1 and P2 using the direct method. 2. Determine the total cost of P1 and P2 using the step method. 3. Determine the total cost of P1 and P2 using the reciprocal method.

Robinson Products Company has two service departments (S1 and S2) and two production departments (P1 and P2). The distribution of each service department’s efforts (in percentages) to the other departments is: From To S1 S2 P1 P2 S1 — 20 % 30 % ? % S2 20 % — ? 40 The direct operating costs of the departments (including both variable and fixed costs) are: S1 $ 255,000 S2 85,000 P1 66,000 P2 200,000 Required: 3. Determine the total cost of P1 and P2 using the reciprocal method.

Answer 2

Question

Chapter 11B, Problem 11B.2E

1.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages.

The allocation of fixed administrative expenses among three restaurants.

2.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

The change in each restaurant’s allocated cost.

3.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

To comment: On usefulness of sales dollars as an allocation base.

Expert Solution & Answer

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Answer 3

Question

Chapter 11B, Problem 11B.2E

1.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages.

The allocation of fixed administrative expenses among three restaurants.

2.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

The change in each restaurant’s allocated cost.

3.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

To comment: On usefulness of sales dollars as an allocation base.

Expert Solution & Answer

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Answer 4

Question

Chapter 11B, Problem 11B.2E

1.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages.

The allocation of fixed administrative expenses among three restaurants.

2.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

The change in each restaurant’s allocated cost.

3.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

To comment: On usefulness of sales dollars as an allocation base.

Expert Solution & Answer

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Answer 5

Chapter 11B, Problem 11B.2E

1.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages.

The allocation of fixed administrative expenses among three restaurants.

2.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

The change in each restaurant’s allocated cost.

3.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

To comment: On usefulness of sales dollars as an allocation base.

Answer 6

Chapter 11B, Problem 11B.2E

1.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages.

The allocation of fixed administrative expenses among three restaurants.

Answer 7

Chapter 11B, Problem 11B.2E

1.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages.

The allocation of fixed administrative expenses among three restaurants.

Answer 8

2.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

The change in each restaurant’s allocated cost.

Answer 9

2.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

The change in each restaurant’s allocated cost.

Answer 10

3.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

To comment: On usefulness of sales dollars as an allocation base.

Answer 11

3.

To determine

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

To comment: On usefulness of sales dollars as an allocation base.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 11B - Prob. 11B.1E Ch. 11B - Prob. 11B.2E Ch. 11B - Prob. 11B.3E Ch. 11B - Prob. 11B.4P Ch. 11B - Prob. 11B.5P

Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation , suppliers, and employee wages. The allocation of fixed administrative expenses among three restaurants.

Solution Summary: The author explains that Expenses are the cost that helps company in operating through which company generates revenue.

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Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages.

The allocation of fixed administrative expenses among three restaurants.

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

The change in each restaurant’s allocated cost.

Want to see the full answer?

Chapter 11B Solutions

Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation , suppliers, and employee wages. The allocation of fixed administrative expenses among three restaurants.

Solution Summary: The author explains that Expenses are the cost that helps company in operating through which company generates revenue.

Concept explainers

Videos

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. The allocation of fixed administrative expenses among three restaurants.

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan. The change in each restaurant’s allocated cost.

Want to see the full answer?

Chapter 11B Solutions

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages.

The allocation of fixed administrative expenses among three restaurants.

Introduction: Expenses are the cost that helps company in operating through which company generates revenue. Expenses include payments made to factory lease, equipment depreciation, suppliers, and employee wages. mapping the formal plan.

The change in each restaurant’s allocated cost.