EBK ACCOUNTING PRINCIPLES
13th Edition
ISBN: 9781119411017
Author: Weygandt
Publisher: WILEY
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 25, Problem 6BE
To determine
Introduction:
A responsibility report is prepared by the management to determine the total cost being incurred in their respective controllable areas. This report is then transferred to successive departments (if any) and then submitted to the vice president.
To prepare: A responsibility report for the cost center.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows.
Budget
Actual
Indirect materials
$15,300
$14,700
Indirect labor
19,800
20,300
Utilities
10,100
10,900
Supervision
5,800
5,800
All costs are controllable by the department manager.Prepare a responsibility report for April for the cost center.
HANNON COMPANYAssembly DepartmentManufacturing Overhead Cost Responsibility ReportFor the Month Ended April 30, 2020
Difference
Controllable Cost
Budget
Actual
FavorableUnfavorableNeither Favorablenor Unfavorable
Select an opening responsibility report item Indirect MaterialsIndirect LaborSupervisionUtilities
$Enter a dollar amount
$Enter a dollar amount
$Enter the difference
Select an option…
In the Assembly Department of Cobb Company, budgeted and actual manufacturing overhead costs for the month of April 2010 were as follows.
Budget
Actual
Indirect materials
$15,000
$14,300
Indirect labor
20,000
20,600
Utilities
10,000
10,750
Supervision
5,000
5,000
All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.
In the Assembly Department of Concord Company, budgeted and actual manufacturing overhead costs for the month of April 2022
were as follows.
Indirect materials
Indirect labor
Utilities
Supervision
Budget
$18,240 $16,302
Controllable Cost
22,800
11,400
Actual
5,700
23,484
12,369
5,700
All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.
Budget
CONCORD COMPANY
Assembly Department
Manufacturing Overhead Cost Responsibility Report
For the Year Ended April 30, 2022
Actual
Differenc
Favorable
Unfavorab
Neither Favol
nor Unfavori
Chapter 25 Solutions
EBK ACCOUNTING PRINCIPLES
Ch. 25 - Prob. 1QCh. 25 - Prob. 2QCh. 25 - Prob. 3QCh. 25 - 4. Ken Bay questions the usefulness of a master...Ch. 25 - Prob. 5QCh. 25 - Prob. 6QCh. 25 - Prob. 7QCh. 25 - Prob. 8QCh. 25 - Prob. 9QCh. 25 - Prob. 10Q
Ch. 25 - Prob. 11QCh. 25 - Prob. 12QCh. 25 - Prob. 13QCh. 25 - Prob. 14QCh. 25 - Prob. 15QCh. 25 - Prob. 16QCh. 25 - Prob. 17QCh. 25 - Prob. 18QCh. 25 - Prob. 19QCh. 25 - Prob. 20QCh. 25 - Prob. 21QCh. 25 - Prob. 22QCh. 25 - Prob. 23QCh. 25 - Prob. 24QCh. 25 - Prob. 25QCh. 25 - Prob. 26QCh. 25 - Prob. 1BECh. 25 - Prob. 2BECh. 25 - Prob. 3BECh. 25 - Prob. 4BECh. 25 - Prob. 5BECh. 25 - Prob. 6BECh. 25 - (LO 3) Torres Company accumulates the following...Ch. 25 - Prob. 8BECh. 25 - Prob. 9BECh. 25 - Prob. 10BECh. 25 - Prob. 11BECh. 25 - Prob. 12BECh. 25 - Prob. 1DIECh. 25 - Prob. 2DIECh. 25 - Prob. 3DIECh. 25 - Prob. 4DIECh. 25 - Prob. 1ECh. 25 - E24-2 Crede Company budgeted selling expenses of...Ch. 25 - Prob. 3ECh. 25 - Prob. 4ECh. 25 - Prob. 5ECh. 25 - Prob. 6ECh. 25 - Prob. 7ECh. 25 - Prob. 8ECh. 25 - Prob. 9ECh. 25 - Prob. 10ECh. 25 - Prob. 11ECh. 25 - Prob. 12ECh. 25 - Prob. 13ECh. 25 - Prob. 14ECh. 25 - Prob. 15ECh. 25 - Prob. 16ECh. 25 - Prob. 17ECh. 25 - Prob. 18ECh. 25 - Prob. 19ECh. 25 - Prob. 20ECh. 25 - Prob. 21ECh. 25 - Prob. 1PSACh. 25 - (LO 2) Zelmer Company manufactures tablecloths....Ch. 25 - Prob. 3PSACh. 25 - Prob. 4PSACh. 25 - Prob. 5PSACh. 25 - Prob. 6PSACh. 25 - Prob. 7PSACh. 25 - Service Green Pastures is a 400-acre farm on the...Ch. 25 - Prob. 2EYCTCh. 25 - Prob. 3EYCTCh. 25 - Prob. 4EYCTCh. 25 - Prob. 5EYCTCh. 25 - Prob. 7EYCT
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- John Sheng, a cost accountant at Starlet Company, is developing departmental factory overhead application rates for the companys Tooling and Fabricating departments. The budgeted overhead for each department and the data for one job are as follows: Using the departmental overhead application rates, total overhead applied to Job 231 in the Tooling and Fabricating departments will be: a. 225. b. 303. c. 537. d. 671.arrow_forwardGHT Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. The budget for the Consumer Products Division for the month ended January 31 is as follows: During January, the costs incurred in the Consumer Products Division were as follows: Instructions 1. Prepare a budget performance report for the director of the Consumer Products Division for the month of January. 2. For which costs might the director be expected to request supplemental reports?arrow_forwardLonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Corporate records were obtained to estimate the amount of activity to be used by the two products. The estimated activity-base usage quantities and units produced follow: a. Determine the activity rate for each activity. b. Use the activity rates in (a) to determine the total and per-unit activity costs associated with each product. Round to the nearest cent.arrow_forward
- In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2017 were as follows. Budget Actual Indirect materials $16,000 $14,300 Indirect Labor 20,000 20,600 Utilities 10,000 10,850 Supeervision 5,000 5,000 All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.arrow_forwarda) Develop a physical flow analysis for the assembly department for the month of April. b) Calculate equivalent units of production for the assembly department for the month of April. c) Calculate the unit cost for the assembly department for the month of April. d) Calculate the cost of units transferred out and the cost of EWIP inventory. e) Develop a cost reconciliation for the assembly department for the month of April.arrow_forwardA company reports the following budgeted overhead costs and budgeted cost driver activity. Activity (Cost driver) Quality (number of units inspected) Factory services (square feet) Purchasing (number of orders) Activity Quality Factory services Purchasing Budgeted Cost $ 52,116 $ 123,216 $ 17,472 Use activity-based costing to compute the activity rate for each activity. Note: Round your "Activity Rate" to 2 decimal places. Budgeted Cost $ 52,116 123,216 17,472 Budgeted Activity of Cost Driver Standard Deluxe Total 3,180 860 3,820 2,220 188 228 Budgeted Activity Usage Activity Rate 4,040 6,040 416arrow_forward
- Forsythe, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the year and their allocation bases are as follows: 1(Click the icon to view the budgeted costs and activity bases.) Read the requirements2. Requirement 1. Compute the predetermined overhead allocation rate for each activity. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest cent.) Predetermined OH (1) ÷ (2) = allocation rate Materials handling ÷ = Machine setup ÷ = Insertion of parts ÷ =…arrow_forwardA company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: BUDGETED ACTIVITY Budgeted Cost Product A $70,000 $45,000 $82,000 Activity Cost Pool Activity 1 Activity 2 Activity 3 How much overhead will be assigned to Product B using activity-based costing? Product B 9,000 15,000 1,000 6,000 7,000 2,500 Product C 20,000 8,000 1,625arrow_forwardThe Costa Company uses a flexible budget and standard costs to aid planning and control of its machining manufacturing operations. Its costing system for manufacturing has two direct-cost categories (direct materials and direct manufacturing labor-both variable) and two overhead-cost categories (variable manufacturing overhead and fixed manufacturing overhead, both allocated using direct manufacturing labor-hours). The following actual results are for August: E (Click the icon to view the results.) Data Table Some additional information about Costa Company's budget, standard costs and labor follows: A (Click the icon to view additional information.) Read the requirements. Direct materials price variance (based on purchases) $179,300 F Direct materials efficiency variance $770,500 U Requirement 1. Compute the listed amounts for August. Direct manufacturing labor costs incurred 624,750 Determine the formula, then complete the computation for each. (Abbreviations used: DM = Direct…arrow_forward
- The following information was taken from the annual manufacturing overhead cost budget of SCM Companyarrow_forwardA manufacturing company has a standard costing system based on standard direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 3,700 DLHs Overhead costs at the denominator activity level: Variable overhead cost $ 28,490 Fixed overhead cost $ 47,545 The following data pertain to operations for the most recent period: Actual hours 3,900 DLHs Standard hours allowed for the actual output 3,850 DLHs Actual total variable manufacturing overhead cost $ 29,445 Actual total fixed manufacturing overhead cost $ 47,995 The fixed manufacturing overhead budget variance for the period is closest to: $615 F $1,478 U $450 U $2,120 Uarrow_forwardA company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $ 87,000 7,700 10,700 21,700 Activity 2 $ 62,000 8,700 16,700 9,700 Activity 3 $ 116,000 4,200 2,700 3,325 How much overhead will be assigned to Product B using activity-based costing?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
What is Cost Allocation? Definition & Process; Author: FloQast;https://www.youtube.com/watch?v=hLhvvHvZ3JM;License: Standard Youtube License