Stand-alone cost allocation method: The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs. Incremental cost allocation method: The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user. To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

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Answer 1

Question

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

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Revenue allocation. Fang Inc. produces and sells DVDs to business people and students who are planning extended stays in China. It has been very successful with two DVDs: Beginning Mandarin and Conversational Mandarin. It is introducing a third DVD, Reading Chinese Characters. It has also decided to market its new DVD in two different packages grouping the Reading Chinese Characters DVD with each of the other two language DVDs. Information about the separate DVDs and the packages follow.

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Answer 2

Question

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Expert Solution & Answer

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Answer 3

Question

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Expert Solution & Answer

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Answer 4

Question

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Expert Solution & Answer

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Answer 5

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Answer 6

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

Answer 7

Chapter 15, Problem 15.28P

1. (a)

To determine

Stand-alone cost allocation method:

The stand-alone cost allocation method is a method of allocating the common costs. This method uses the data that relates to each user of a cost object as a separate entity to determine the weights used in alloting the costs.

Incremental cost allocation method:

The incremental method of alloting the costs is that method which makes a ranking of the user objects in the order of the most responsible user.

To determine: The allocation of revenue from the B+R package to each product of D using (a) Stand-alone method, (b) incremental method with B and R in turn as the primary product.

Answer 8

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

Answer 9

1. (b)

To determine

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

Answer 10

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

Answer 11

2. (a)

To determine

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

Answer 12

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

Answer 13

2. (b)

To determine

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

Answer 14

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Answer 15

3.

To determine

The most appropriate method to allocate revenues among the product D and the reason for it.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 15 - Prob. 15.1Q Ch. 15 - Describe how the dual-rate method is useful to...Ch. 15 - How do budgeted cost rates motivate the...Ch. 15 - Give examples of allocation bases used to allocate...Ch. 15 - Why might a manager prefer that budgeted rather...Ch. 15 - To ensure unbiased cost allocations, fixed costs...Ch. 15 - Prob. 15.7Q Ch. 15 - What is conceptually the most defensible method...Ch. 15 - Distinguish between two methods of allocating...Ch. 15 - What are the challenges of using the incremental...

The allocation of revenue from the B+R package to each product of D using incremental method with B and R in turn as the primary product.

The allocation of revenue from the C+R package to each product of D using Stand-alone method.

The allocation of revenue from the C+R package to each product of D using incremental method with C and R in turn as the primary product.

The most appropriate method to allocate revenues among the product D and the reason for it.

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