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Part 2 | |||
Forming Department | Assembly Department | Total | |
Variable costs: | |||
$18 per machine-hour × 12,000 machine-hours | $ 216,000 | ||
$18 per machine-hour × 4,100 machine-hours | $ 73,800 | $ 289,800 | |
Fixed costs: | |||
71% × $200,000 | $ 142,000 | ||
29% × $200,000 | $ 58,000 | $ 200,000 | |
Total cost charged | $ 358,000 | $ 131,800 | $ 489,800 |
Part 2 | |||
Variable Cost | Fixed Cost | Total | |
Actual cost incurred during the year | $ 347,340 | $ 215,000 | $ 562,340 |
Cost charged (above) | $ 358,000 | $ 131,800 | $ 489,800 |
Cost not charged (spending variance) | $ (10,660) | $ 83,200 | $ 72,540 |
Problem 11B-5 Service Department Charges (L011-6) Tasman Products, Ltd., of Australia has a Maintenance Department that...
Problem 11B-5 Service Department Charges (LO11-6) Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Departmer and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost ar other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Variable costs for lubricants Fixed costs for salaries...
Problem 11B-5 Service Department Charges [LO11-6] Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Variable costs for lubricants Fixed costs for salaries...
Tasman Products, Ltd., of Australia has a Maintenance Department
that services the equipment in the company’s Forming Department and
Assembly Department. The cost of this servicing is charged to the
operating departments on the basis of machine-hours. Cost and other
data relating to the Maintenance Department and to the other two
departments for the most recent year are presented below.
Data for the Maintenance Department follow:
1. How much Maintenance Department cost should be charged to the
Forming Department and...
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 325,600 * $ 417,280 Fixed costs for...
Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Variable costs for lubricants Fixed costs for salaries and other Budget $ 294,000* $210,000...
Tasman Products, Ltd., of Australla has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Budget $325,500 $417,150 $210,000 Actual Variable costs for lubricants Fixed costs for salaries and...
Swift Company has a Maintenance Department which provides service to line departments A and B. The cost driver in the Maintenance Department is machine hours worked by the line departments. The Maintenance Department planned variable cost of $8,000 for June. Actual variable cost for the month totaled $15,000. Budget and actual machine hours in the operating departments for the month are shown below. How much variable maintenance cost should be charged to Dept. A for performance evaluation (end of period)?...
Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $66,465 per year Variable costs (supplies): $1.35 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows: Yearly hours...
ebook Calculator Calculating and using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $61,040 per year Variable costs (supplies): $1.4 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows:...
Problem 11B-4 Service Department Charges (LO11-6] Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $79,000 per month plus $0.70 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak period requirements. The Auto Division is responsible for 71% of the peak period...