Homework Answers
| Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks! |
| You Ought to Get This Company | Support Department | ||||
| Direct Method | Janitorial | Maintenance | Accounting | R&D | Total |
| Hours of maintenance | 5.00 | - | 20.00 | 15.00 | 40.00 |
| Square feet | 20.00 | 30.00 | 100.00 | 300.00 | 450.00 |
| Costs before allocation | 60,172.00 | 71,612.00 | 82,500.00 | 61,372.00 | 275,656.00 |
| Allocation of Maintenance costs (20:15) | (71,612.00) | 40,921.14 | 30,690.86 | - | |
| Allocation of Janitorial costs (100:300) | (60,172.00) | 15,043.00 | 45,129.00 | - | |
| Total allocated | 55,964.14 | 75,819.86 | |||
| Costs after allocation | - | - | 138,464.14 | 137,191.86 | 275,656.00 |
| Answer 1 $ 55,964.14 allocated to Accounting Department using Direct Method. |
| Answer 2 $ 75,819.86 allocated to R&D Department using Direct Method. |
| Support Department | |||||
| Step Down Method | Janitorial | Maintenance | Accounting | R&D | Total |
| Hours of maintenance | 5.00 | - | 20.00 | 15.00 | 40.00 |
| Square feet | 20.00 | 30.00 | 100.00 | 300.00 | 450.00 |
| Costs before allocation | 60,172.00 | 71,612.00 | 82,500.00 | 61,372.00 | 275,656.00 |
| Rank | Rank 2 | Rank 1 | |||
| Maintenance cost will be allocated first it is higher than Janitorial cost. | |||||
| Allocation of Maintenance costs (5:20:15) | 8,951.50 | (71,612.00) | 35,806.00 | 26,854.50 | - |
| Total costs | 69,123.50 | - | 118,306.00 | 88,226.50 | 275,656.00 |
| Allocation of Janitorial costs (100:300) | (69,123.50) | - | 17,280.88 | 51,842.63 | - |
| Total allocated | 53,086.88 | 78,697.13 | |||
| Costs after allocation | - | - | 135,586.88 | 140,069.13 | 275,656.00 |
| Answer 3 $ 53,086.88 allocated to Accounting Department using Step Down Method. |
| Answer 4 $ 78,697.13 allocated to R&D Department using Step Down Method. |
| Support Department | |||||
| Reciprocal Method | Janitorial | Maintenance | Accounting | R&D | Total |
| Hours of maintenance | 5.00 | - | 20.00 | 15.00 | 40.00 |
| Square feet | 30.00 | 100.00 | 300.00 | 430.00 | |
| Hours of maintenance % | 12.50% | 50.00% | 37.50% | 100.00% | |
| Square feet % | 6.98% | 23.26% | 69.77% | 100.00% | |
| Costs before allocation | 60,172.00 | 71,612.00 | 82,500.00 | 61,372.00 | 275,656.00 |
| Let Overhead cost of Maintenance department is $ X and Overhead cost of Janitorial department is $ Y |
| So, X= 71612+ 6.98% of Y | Equation 1 |
| Y= 60712+ 12.50% of X | Equation 2 |
| Or, X= 71612+ 0.0698Y | |
| Y= 60712+ 0.125X |
| Substituting the value of X in equation 2: |
| Y = 60712 + 0.125(71,612 + 0.0698Y) |
| Y = 60712 + 8951.50 + 0.0087Y |
| Y – 0.0087Y = 69,123.50 |
| 0.9913Y = 69,123.50 |
| Y = 69,123.50/0.9913 |
| Y = $ 69,731.62 |
| Total Overhead cost of Janitorial department is $ 69,731.62 |
| Substituting the value of Y in equation 1: |
| X= 71612+ 6.98% of Y |
| X= 71612+ 6.98%* 69,731.62 |
| X= 71612+ 4865 |
| X= $ 76,477 |
| Total Overhead cost of maintenance department is $ 76,477. |
| Allocation Summary | Support Department | ||||
| Reciprocal Allocation Method | Janitorial | Maintenance | Accounting | R&D | Total |
| Hours of maintenance % | 12.50% | 50.00% | 37.50% | 100.00% | |
| Square feet % | 6.98% | 23.26% | 69.77% | 100.00% | |
| Costs before allocation | 60,172.00 | 71,612.00 | 82,500.00 | 61,372.00 | 275,656.00 |
| Allocation | |||||
| Allocation of Maintenance costs (20:15) | (69,731.62) | 4,865.00 | 16,216.66 | 48,649.97 | - |
| Allocation of Janitorial costs (100:300) | 9,559.62 | (76,477.00) | 38,238.50 | 28,678.87 | - |
| Total allocated | 54,455.16 | 77,328.84 | |||
| Costs after allocation | - | - | 136,955.16 | 138,700.84 |
| Answer 5 $ 54,455.16 allocated to Accounting Department using Reciprocal Method. |
| Answer 6 $ 77,328.84 allocated to R&D Department using Reciprocal Method. |
Add Answer to:
The Yououghtogethis Company is looking for a new name... however, that is another story. Information for...
The Yeyoughtogethis Company is looking for a new name... however, that is another story. Information for...
The Yeyoughtogethis Company is looking for a new name... however, that is another story. Information for four departments in this company was as follows at the end of the period. Number of I/S Jobs Hours of Maintenance Department Accounting Janitorial R& D Square Feet 100 square feet 20 square feet 300 square feet 30 square feet Cost before Allocation $82,500 $60,172 $61,372 $71,612 Maintenance Required: • You will not receive credit without showing work. • Answers should be to two...
For its two-story building, each year Imposters Company pays rent of $180,000. The two story building space has 5 d...
For its two-story building, each year Imposters Company pays rent of $180,000. The two story building space has 5 departments mentioned below. Jewelry department Cosmetics department Housewares department Tools department Shoes department 1,400 square feet of first-floor space 2,600 square feet of first-floor space 1,600 square feet of second-floor space 640 square feet of second-floor space 1,760 square feet of second-floor space For the 1st floor, Imposters Company allocates 65% of total rent expense and 35% to the 2nd floor....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
BluStar Company has two service departments, Administration and
Accounting, and two operating departments, Domestic and
International. Administration costs are allocated on the basis of
employees, and Accounting costs are allocated on the basis of
number of transactions. A summary of BluStar operations
follows.
6 BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of...
a & b only 11-49. Comparison of Allocation Methods (LO 11-2, 3, 4) eXcel BluStar Company...
a & b only
11-49. Comparison of Allocation Methods (LO 11-2, 3, 4) eXcel BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows: Administration Accounting Domestic International Employees Transactions 25 45 180 25,000 $360,000 20,000 $936,000 80,000 $3,600,000 Department direct costs $144,000 Required a Allocate the...
Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems...
Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Carol Bingham, a pricing analyst, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. She assembled...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees – 28 46 26 Transactions 40,000 – 24,000 96,000 Department direct costs $ 353,000 $ 146,000 $ 945,000 $ 3,640,000 Required: a. Allocate the cost of the service departments to the operating...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Employees Transactions Department direct costs Administration Accounting 22 33,000 $363,000 $149,000 Domestic 48 22,000 $935,000 International 30 88,000 $3,520,000 Required: a. Allocate the cost of the service departments to the operating departments using the direct method. b....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International....
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Administration Accounting Domestic International Employees – 28 46 26 Transactions 32,000 – 25,000 100,000 Department direct costs $ 363,000 $ 145,000 $ 935,000 $ 3,590,000 Required: a. Allocate the cost of the service departments to the operating...
The following information is for Secrest Manufacturing Company: Budgeted manufacturing overhead be- fore allocation of support...
The following information is for Secrest Manufacturing Company: Budgeted manufacturing overhead be- fore allocation of support dept. costs Proportions of service provided by T Proportions of service provided by V Support Operating Departments... Departments 1 2 $60,000 $80,000 $30,000 $25,000 - 30% 50% 20% 10% - 60% 30% Complete the schedule below using the direct method to allocate the costs of the support departments to Departments 1 and 2. I V I 2 Total Budgeted manufacturing overhead be- fore allocation...
Costs to Allocate Service Dept. 1 Service Dept. 2 $480 $600 Allocation S1 S2 Production Accounting...
Costs to Allocate Service Dept. 1 Service Dept. 2 $480 $600 Allocation S1 S2 Production Accounting Check Service Dept. 1 Service Dept. 2 ? 0.2 0.6 ? 0.2 0.1 Marketing 0.1 02 0.1 0.1 1.0 1.0 .20 Service Dept. 1 Service Dept. 2 .40 .60 .20 .20 .10 .10 .10 .10 Production Dept. Accounting Dept. Marketing Dept. Required: 1) Allocate the dollars using the Direct Method 2) Allocate the dollars using the Step Method (allocate the 'correct' department first) 3)...
The Yeyoughtogethis Company is looking for a new name... however, that is another story. Information for four departments in this company was as follows at the end of the period. Number of I/S Jobs Hours of Maintenance Department Accounting Janitorial R& D Square Feet 100 square feet 20 square feet 300 square feet 30 square feet Cost before Allocation $82,500 $60,172 $61,372 $71,612 Maintenance Required: • You will not receive credit without showing work. • Answers should be to two...
For its two-story building, each year Imposters Company pays rent of $180,000. The two story building space has 5 departments mentioned below. Jewelry department Cosmetics department Housewares department Tools department Shoes department 1,400 square feet of first-floor space 2,600 square feet of first-floor space 1,600 square feet of second-floor space 640 square feet of second-floor space 1,760 square feet of second-floor space For the 1st floor, Imposters Company allocates 65% of total rent expense and 35% to the 2nd floor....
BluStar Company has two service departments, Administration and
Accounting, and two operating departments, Domestic and
International. Administration costs are allocated on the basis of
employees, and Accounting costs are allocated on the basis of
number of transactions. A summary of BluStar operations
follows.
6 BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of...
a & b only
11-49. Comparison of Allocation Methods (LO 11-2, 3, 4) eXcel BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows: Administration Accounting Domestic International Employees Transactions 25 45 180 25,000 $360,000 20,000 $936,000 80,000 $3,600,000 Department direct costs $144,000 Required a Allocate the...
Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Carol Bingham, a pricing analyst, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. She assembled...
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. Employees Transactions Department direct costs Administration Accounting 22 33,000 $363,000 $149,000 Domestic 48 22,000 $935,000 International 30 88,000 $3,520,000 Required: a. Allocate the cost of the service departments to the operating departments using the direct method. b....
The following information is for Secrest Manufacturing Company: Budgeted manufacturing overhead be- fore allocation of support dept. costs Proportions of service provided by T Proportions of service provided by V Support Operating Departments... Departments 1 2 $60,000 $80,000 $30,000 $25,000 - 30% 50% 20% 10% - 60% 30% Complete the schedule below using the direct method to allocate the costs of the support departments to Departments 1 and 2. I V I 2 Total Budgeted manufacturing overhead be- fore allocation...
Costs to Allocate Service Dept. 1 Service Dept. 2 $480 $600 Allocation S1 S2 Production Accounting Check Service Dept. 1 Service Dept. 2 ? 0.2 0.6 ? 0.2 0.1 Marketing 0.1 02 0.1 0.1 1.0 1.0 .20 Service Dept. 1 Service Dept. 2 .40 .60 .20 .20 .10 .10 .10 .10 Production Dept. Accounting Dept. Marketing Dept. Required: 1) Allocate the dollars using the Direct Method 2) Allocate the dollars using the Step Method (allocate the 'correct' department first) 3)...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago