Homework Answers
Requirement 1: Allocate service department costs using the direct method as follows
| Particulars | Building Maintenance | Factory Office | Assembly | Machining | Total |
| Direct charges | $90,000 | $171,000 | $378,000 | $328,000 | $967,000 |
| Allocate building maintenance based on floor space: | |||||
| Assembly ($90,000 × (40% ÷ (40% + 50%))) | $40,000 | ||||
| Machining ($90,000 × (50% ÷ (40% + 50%))) | $50,000 | ||||
| Allocate factory office based on direct labor hours: | |||||
| Assembly ($171,000 × (80,000 ÷ (80,000 + 40,000))) | $114,000 | ||||
| Machining ($171,000 × (40,000 ÷ (80,000 + 40,000))) | ________ | $57,000 | ________ | ||
| Total | $532,000 | $435,000 | $967,000 |
Requirement 2: Allocate service department costs using the sequential distribution method as follows
| Particulars | Building Maintenance | Factory Office | Assembly | Machining | Total |
| Direct charges | $90,000 | $171,000 | $378,000 | $328,000 | $967,000 |
| Allocate building maintenance based on floor space: | |||||
| Factory Office ($90,000 × 10%) | $9,000 | ||||
| Assembly ($90,000 × 40%) | $36,000 | ||||
| Machining ($90,000 × 40%) | _______ | $45,000 | |||
| $180,000 | |||||
| Allocate factory office based on direct labor hours: | |||||
| Assembly ($180,000 × (80,000 ÷ (80,000 + 40,000))) | $120,000 | ||||
| Machining ($180,000 × (80,000 ÷ (80,000 + 40,000))) | ________ | $60,000 | ________ | ||
| Total | $534,000 | $433,000 | $967,000 |
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critical thinking problem E4-8
distribute cost for questions 1 & 2 to spreadsheet
Labor hours are...
4. ABC Company has two service and three production departments. Building Maintenance and Factory office are...
4. ABC Company has two service and three production departments. Building Maintenance and Factory office are the service departments. The production departments are ASSEMBLY, Machining and Finishing. The following data have been estimated for next years operations: Direct labor hours: Asswmbly,45,000; Machining,35,000;Finishing 40,000 Floor space occupied: factory office 15%; Assembly, 35%; Machining 25%, Finishing 25% The direct charges expected to be made to the departments are as follows: Building maintenance $120,000 Factory office $171,000 Assembly $378,000 Machining $225,000 Finishing $225000...
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SandersSanders Manufacturing Company produces electronic components on a job order basis. Most business is gained through...
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Problem 4B-6 Step-Down Method versus Direct Method; Predetermined Overhead Rates [LO4-10, LO4-11] The Sendai Co., Ltd.,...
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. L04-11 PROBLEM 48-6 Step-Down Method versus Direct Method: Predetermined Overhead Rates L04-10 The Sendai Co., Ltd. of Japan has budgeted costs in its various departments as follows for the coming year. Factory Administration $270,000 Custodial Services 68,760 Personnel 28.840 Maintenance 45,200 Machining-overhead 376,300 Assembly-overhead 175,900 Total cost $965,000 The company allocates service department costs to other departments in the order listed below. Number of Employees 12 Total Labor Hours Square Feet of Space Occupied Direct Labor- Houts Machine Houts...
The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year Factory Administration Custodial Services Personnel Maintenance Machining overhead Assembly-overhead Total cost $ 533,800 102,568 68,774 151,718 1,851,536 761,704 $3,470, 100 The company allocates service department costs to other departments in the order listed below. Department Factory Administration Custodial Services Personnel Maintenance Machining Assembly Square Total Teet of Direct Number of Labor Space Labor- Machine Employees Hours Occupied Hours Hours - 6,500...
The Sendai Co., Ltd., of Japan has budgeted costs in its various departments as follows for the coming year: Factory Administration Custodial Services $ 640,680 103,274 Personnel 31,056 148,590 1,391,860 510,140 Maintenance Machining-overhead Assembly-overhead Total cost $2,825,600 The company allocates service department costs to other departments in the order listed below. Square Feet of Direct Total Number of Labor- Space Labor- Machine- Bours Department Employees Hours Occupied Hours 32 13 Factory Administration Custodial Services Personnel 5,700 3,600 8,100 52,900 14,100...
Problem 4B-6 Step-Down Method versus Direct Method; Predetermined Overhead Rates [LO4-10, LO4-11] The Sendai Co., Ltd., of Japan has budgeted costsin its various departments as follows for the coming уear: Factory Administration Custodial Services 825,470 108,831 Personnel 28,970 60,569 633,098 865,282 $2,522,220 Maintenance Machining-overhead Assembly-overhead Total cost The company allocates service department coststo other departments in the order listed below. Square Feet of Total Direct Number of Labor Labor- Machine- Space Hours Occupied Employees Department Factory Administration Custodial Services Hours...
Problem 4B-6 Step-Down Method versus Direct Method; Predetermined Overhead Rates [LO4-10, LO4-11] The Sendai Co., Ltd., of Japan has budgeted costsin its various departments as follows for the coming уear: Factory Administration Custodial Services 825,470 108,831 Personnel 28,970 60,569 633,098 865,282 $2,522,220 Maintenance Machining-overhead Assembly-overhead Total cost The company allocates service department coststo other departments in the order listed below. Square Feet of Total Direct Number of Labor Labor- Machine- Space Hours Occupied Employees Department Factory Administration Custodial Services Hours...
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