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Devon allocates support department costs using the direct method
and estimated costs. The support department costs are budgeted at
$88,000 for Department A, $63,000 for Department B, and $40,000 for
Department C. These costs are allocated using the proportion of
total cost the firm would pay to an outside service provider:
Support Departments
Operating Departments
Dept. A
Dept. B
Dept. C
Casting
Machine
Direct costs
$88,000
$63,000
$40,000
-
-
Labour hours
6,000
4,000
Machine hours
2,000
10,000
Costs if...
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The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: 囲click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: 囲(Click the icon to view the data.) Read the requirements Support departments: $30,000 1,350 77,136 1,049...
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Company has prepared department overhead budgets for
budgeted-volume levels before allocations as follows:
Management has decided that the most appropriate inventory costs
are achieved by using individual department overhead rates. These
rates are developed after support-department costs are allocated to
operating departments. Bases for allocation are to be selected from
the following:
Support departments:
Building and grounds
$56,000
Personnel
1,140
General plant administration
14,040
Cafeteria: Operating loss
300
Storeroom
6,244
$77,724
Operating departments:
Machining
$34,000
Assembly
49,000
83,000
Total for...
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The Eastern Summit Company has prepared department overhead
budgets for budgeted-volume levels before allocations as
follows:
Support departments:
Building and grounds
$45,000
Personnel
7,800
General plant administration
36,120
Cafeteria: Operating loss
20,670
Storeroom
18,300
$127,890
Operating departments:
Machining
$36,000
Assembly
60,000
96,000
Total for support and operating departments
$223,890
Management has decided that the most appropriate inventory costs
are achieved by using individual department overhead rates. These
rates are developed after support-department costs are allocated
to operating departments. Bases for...
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Phoenix Partners provides management consulting services to
government and corporate clients. Phoenix has two support
departmentslong dashadministrative services (AS) and information
systems (IS)long dashand two operating departmentslong
dashgovernment consulting (GOVT) and corporate consulting (CORP).
For the first quarter of 2017, Phoenix's cost records indicate
the following:
1.
Allocate the two support departments' costs to the two
operating departments using the following methods:
a.
Direct method
b.
Step-down method (Allocate AS first)
c.
Step-down method (Allocate IS first
Data Table SUPPORT...
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(a) The Meghna Company is divided into four departments: A, B and C are productiondepartments and D is a Service department. the actual costs for a period are as follows:Particulars AmountsRent and Rates Tk.10,000Repairs to plant 6,000Depreciation of plant 5,000Supervision 15,000Fire Insurance 5,000Electric power 9,000Employer’s Liability Insurance 1,500Stores overhead 5,400Subsidy to canteen 1,500First aid post 1,200Premium for worker’s compensation 600Other Information:Description Dept. A Dept. B Dept. C Dept. DArea Sq. ft. 1500 1100 900 500Number of Employees 20 15 10...
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Manhattan Partners provides management consulting services to
government and corporate clients. Concord has two support
departments---administrative services (AS) and information system
(IS)---and two operating departments---government consulting
(GOVT) and corporate consulting (CORP). For the first quarter of
2017, Manhattan's cost records indicate the following:
SUPPORT
OPERATING
AS
IS
GOVT
CORP
Total
Budgeted overhead costs before any
interdepartment cost allocations
$390,000
$3,600,000
$8,750,000
$12,540,000
$25,280,000
Support work supplied by AS
(budgeted head count)
---
20%
48%
32%
100%
Support work supplied by...
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The Heightened Hill Company has prepared department overhead
budgets for budgeted-volume levels before allocations as
follows:
Support departments:
Building and grounds
$21,000
Personnel
1,520
General plant administration
36,960
Cafeteria: Operating loss
105
Storeroom
2,975
$62,560
Operating departments:
Machining
$34,000
Assembly
49,000
83,000
Total for support and operating departments
$145,560
Management has decided that the most appropriate inventory costs
are achieved by using individual department overhead rates. These
rates are developed after support-department costs are allocated
to operating departments. Bases for...
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Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments-administrative services (AS) and information systems (IS)—and two operating departments-government consulting (GOVT) and corporate consulting RP). For the first quarter of 2017, Phoenix's cost records indicate the following: (Click the icon to view the cost records.) (CORP). Po Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round...
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i Data Table Bt ht SUPPORT OPERATING AS IS GOVT CORP Total no $ 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 no Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 0 25% 40% 35% 100% ות 10% 0 30% 60% 100% Print Done Direct method X Х 1 Support Departments Operating Departments AS IS GOVT CORP Total al 이 BE $ Direct...
The Southern Wind Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows: 囲click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following: 囲(Click the icon to view the data.) Read the requirements Support departments: $30,000 1,350 77,136 1,049...
Company has prepared department overhead budgets for
budgeted-volume levels before allocations as follows:
Management has decided that the most appropriate inventory costs
are achieved by using individual department overhead rates. These
rates are developed after support-department costs are allocated to
operating departments. Bases for allocation are to be selected from
the following:
Support departments:
Building and grounds
$56,000
Personnel
1,140
General plant administration
14,040
Cafeteria: Operating loss
300
Storeroom
6,244
$77,724
Operating departments:
Machining
$34,000
Assembly
49,000
83,000
Total for...
Phoenix Partners provides management consulting services to
government and corporate clients. Phoenix has two support
departmentslong dashadministrative services (AS) and information
systems (IS)long dashand two operating departmentslong
dashgovernment consulting (GOVT) and corporate consulting (CORP).
For the first quarter of 2017, Phoenix's cost records indicate
the following:
1.
Allocate the two support departments' costs to the two
operating departments using the following methods:
a.
Direct method
b.
Step-down method (Allocate AS first)
c.
Step-down method (Allocate IS first
Data Table SUPPORT...
Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments-administrative services (AS) and information systems (IS)—and two operating departments-government consulting (GOVT) and corporate consulting RP). For the first quarter of 2017, Phoenix's cost records indicate the following: (Click the icon to view the cost records.) (CORP). Po Read the requirements. Requirement 1a. Allocate the two support departments' costs to the two operating departments using the direct method. (Do not round intermediary calculations and round...
i Data Table Bt ht SUPPORT OPERATING AS IS GOVT CORP Total no $ 600,000 $ 2,400,000 $ 8,756,000 $ 12,452,000 $ 24,208,000 no Budgeted overhead costs before any interdepartment cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 0 25% 40% 35% 100% ות 10% 0 30% 60% 100% Print Done Direct method X Х 1 Support Departments Operating Departments AS IS GOVT CORP Total al 이 BE $ Direct...