FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Textbook Question
Chapter 24, Problem 6E
Exercise 24-6
Departmental expense allocation spreadsheet
P2
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two
operating departments for the year 2017.
The advertising department developed and distributed 120 advertisements during the year. Of these, 90 promoted shoes and 30 promoted clothing. Utilities expense of $64,000 is an indirect expense to all departments. Prepare a departmental expense allocation spreadsheet for Marathon Running Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $64,000 of
utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department's expenses to the two operating departments on the basis of the number of ads placed that promoted a department's products, and (4) the administrative department's expenses to the two operating departments based on the amount of sales. Provide supporting computations for the expense allocations.
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Problem 5
The accounting department of the Blanche Corporation provided the
following data for March, 2011.
Sales
P1,200,000
Marketing Expenses
Administrative Expenses
5% of Sales
1% of Sales
P400,000 to
2/3 of DL costs
a P210,000
March 1vi
P100,000
102,350
50,000itec 47,485
Purchases
Factory Overheado
Direct Labor
slin March 31
P82,500
117,135
Inventories:
Finished goods
Work in Process
Materials
Required:
1. Income Statement
2. Cost of Goods sold Statement
to
Stage 2 ABC for a Wholesale CompanyInformation is presented for the activity costs of Brighton Wholesale Company:
Activity
Cost per Unit of Activity Driver
Customer relations
$82.00 per customer per month
Selling
0.09 per sales dollar
Accounting
7.00 per order
Warehousing
0.60 per unit shipped
Packing
0.35 per unit shipped
Shipping
0.40 per pound shipped
The following information pertains to Brighton Wholesale Company's activities in Colorado for the month of June 2017:
Number of orders
320
Sales revenue
$218,000
Cost of goods sold
$98,100
Number of customers
40
Units shipped
5,400
Pounds shipped
81,000
RequiredDetermine the profitability of sales in Colorado for June 2017.Do not use a negative sign with your answers.
Profitability of Sales in Colorado
March 2017
Sales revenue
Answer
Less:
Cost of goods sold
Answer
Customer relations
Answer
Selling expenses
Answer
Accounting
Answer
Warehousing
Answer…
4
eBook
References
Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and
Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of
August follow.
Department
Machining
Assembly
Maintenance
Cafeteria
Direct
Costs
$160,000
65,000
45,000
30,000
Maximum Amount
Proportion of Services Used by
Maintenance Cafeteria Machining Assembly
8.5
0.1
0.3
0.1
Caro estimates that the variable costs in the Maintenance Department total $12,000, and in the Cafeteria variable costs total $17,000.
Avoldable fixed costs in the Maintenance Department are $8,000.
Required:
If Caro outsources the Maintenance Department, what is the maximum It can pay an outside vendor without increasing total costs? (Do
not round Intermediate calculations.)
Chapter 24 Solutions
FUND.ACCT.PRIN.
Ch. 24 - Prob. 1QSCh. 24 - QS 24-2 Basis for cost allocation C1
In each...Ch. 24 - QS 244
Responsibility accounting report...Ch. 24 - QS 24-5
Allocating costs to departments...Ch. 24 - QS 24-6
Allocating costs to departments P2...Ch. 24 - QS 24-7
Allocating costs to departments
P2...Ch. 24 - Prob. 7QSCh. 24 - QS 24-9
Departmental contribution to overhead...Ch. 24 - QS 24-10
Computing return on investment A1...Ch. 24 - QS 24-11
Computing residual income
A1
Refer to...
Ch. 24 -
QS 24-12
Performance measures
A1 A2
Fill in...Ch. 24 - QS 24-13
Computing profit margin and investment...Ch. 24 - Prob. 13QSCh. 24 - Prob. 14QSCh. 24 - Prob. 15QSCh. 24 - Prob. 16QSCh. 24 - Prob. 17QSCh. 24 - Prob. 18QSCh. 24 - Prob. 19QSCh. 24 - Prob. 20QSCh. 24 - Prob. 21QSCh. 24 - Prob. 1ECh. 24 - Prob. 2ECh. 24 - Prob. 3ECh. 24 - Prob. 4ECh. 24 - Prob. 5ECh. 24 - Exercise 24-6 Departmental expense allocation...Ch. 24 - Prob. 7ECh. 24 - Prob. 8ECh. 24 - Prob. 9ECh. 24 - Prob. 10ECh. 24 - Prob. 11ECh. 24 - Prob. 12ECh. 24 - Prob. 13ECh. 24 - Prob. 14ECh. 24 - Prob. 15ECh. 24 - Prob. 16ECh. 24 - Prob. 17ECh. 24 - Prob. 18ECh. 24 - Prob. 19ECh. 24 - Prob. 20ECh. 24 - Prob. 21ECh. 24 - Prob. 22ECh. 24 - Prob. 23ECh. 24 - Prob. 1PSACh. 24 - Prob. 2PSACh. 24 - Prob. 3PSACh. 24 - Prob. 4PSACh. 24 - Prob. 5PSACh. 24 - Prob. 1PSBCh. 24 - Prob. 2PSBCh. 24 - Prob. 3PSBCh. 24 - Prob. 4PSBCh. 24 - Prob. 5PSBCh. 24 - Prob. 24SPCh. 24 - Prob. 1AACh. 24 - Prob. 2AACh. 24 - Prob. 3AACh. 24 - Prob. 1DQCh. 24 - Prob. 2DQCh. 24 - Prob. 3DQCh. 24 - Prob. 4DQCh. 24 - Prob. 5DQCh. 24 - Prob. 6DQCh. 24 - Prob. 7DQCh. 24 - Prob. 8DQCh. 24 - Prob. 9DQCh. 24 - Prob. 10DQCh. 24 - Prob. 11DQCh. 24 - Prob. 12DQCh. 24 - Prob. 13DQCh. 24 - Prob. 14DQCh. 24 - Prob. 15DQCh. 24 - Prob. 16DQCh. 24 - Prob. 17DQCh. 24 - Prob. 18DQCh. 24 - Prob. 1BTNCh. 24 - Prob. 2BTNCh. 24 - Prob. 3BTNCh. 24 - Prob. 4BTN
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