Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and...
Midland Resources has two production departments (Fabrication
and Assembly) and three service departments (Engineering,
Administration, and Maintenance). During July, the following costs
and service department usage ratios were recorded:
| Supplying Department | Using Department | ||||||||||||||
| Engineering | Administration | Maintenance | Fabrication | Assembly | |||||||||||
| Engineering | 0 | 60 | % | 0 | 20 | % | 20 | % | |||||||
| Administration | 15 | % | 0 | 10 | % | 50 | % | 25 | % | ||||||
| Maintenance | 0 | 30 | % | 0 | 15 | % | 55 | % | |||||||
| Direct cost | $ | 54,000 | $ | 304,600 | $ | 50,000 | $ | 260,000 | $ | 90,000 | |||||
Required:
Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.)
|
|||||||||||||||||||||||||
Homework Answers
Solution:
Service department cost = Direct cost + Allocated costs
Engineering = $54,000 + 15% of administration
Administration = $304,600 + 60% of engineering + 30% of maintenance
Maintenance = $50,000 + 10% of administration
Administration = $304,600 + 60% ($54,000 + 15% of administration) + 30% ($50,000 + 10% of adminstration
Administration = $304,600 + $32,400 + 0.09 Administration + $15,000 + 0.03 Administration
Administration = $352,000 / 0.88 = $400,000
Engineering = $54,000 + 15% of $400,000 = $114,000
Maintenance = $50,000 + 10% of $400,000 = $90,000
| Allocated to: | |||
| Costs | Fabrication | Assembly | |
| Engineering | $114,000.00 | $22,800.00 | $22,800.00 |
| Administration | $400,000.00 | $200,000.00 | $100,000.00 |
| Maintenance | $90,000.00 | $13,500.00 | $49,500.00 |
| Total | $236,300.00 | $172,300.00 | |
Add Answer to:
Midland Resources has two production departments (Fabrication
and Assembly) and three service departments (Engineering,
Administration, and...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and...
Midland Resources has two production departments (Fabrication
and Assembly) and three service departments (Engineering,
Administration, and Maintenance). During July, the following costs
and service department usage ratios were recorded:
Supplying Department
Using Department
Engineering
Administration
Maintenance
Fabrication
Assembly
Engineering
0
60
%
0
20
%
20
%
Administration
15
%
0
10
%
50
%
25
%
Maintenance
0
20
%
0
20
%
60
%
Direct cost
$
58,000
$
329,000
$
50,000
$
270,000
$
90,000
Required:
Allocate...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded: Supplying Department Using Department Engineering Administration Maintenance Fabrication Assembly Engineering 0 60 % 0 20 % 20 % Administration 15 % 0 10 % 50 % 25 % Maintenance 0 20 % 0 30 % 50 % Direct cost $ 50,000 $ 290,300 $ 45,000 $ 250,000 $ 90,000 Supplying Department...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Engineering Supplying Department Engineering Administration Maintenance Direct cost Using Department Administration Maintenance 40% 25% 20% $246,500 $40,000 20% Fabrication 15% 45% 30% $220,000 Assembly 45% 10% 50% $80,000 $38,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Allocated to:...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. 0.76 points Engineering Fabrication 15% Supplying Department Engineering Administration Maintenance Direct cost 20% Using Department Administration Maintenance 40% 25% 20% $ 222,800 $40,000 45% 30% $ 205,000 45% 10% 50% $50,000 $32,000 eBook Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. 1.15 points Engineering Supplying Department Engineering Administration Maintenance Direct cost Using Department Administration Maintenance Fabrication 40% 0 15% 25% 45% 30% 15% $248,550 $ 45,000 $230,000 Skipped 208 Assembly 45% 10% 55% $80,000 $ 42,000 eBook References Required: Allocate the service department costs to the two operating departments using the reciprocal...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering,...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Engineering Assembly 20% Supplying Department Engineering Administration Maintenance Direct cost 15% Using Department Administration Maintenance 60% 10% 30% $274,500 $45,000 Fabrication 20% 50% 15% $245,000 25% $48,000 55% $80,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Allocated to:...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineer...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Engineering Supplying Department Engineering Administration Maintenance Direct cost Using Department Administration Maintenance 60% Fabrication 20% 15% Assembly 20% 25% lex Sex 2ex 20% $ 298,000 $52,000 60% $45,000 $255,000 $90,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Allocated...
Anderson Enterprises has three service departments, Administration, Maintenance and security and two production departments, Machining and...
Anderson Enterprises has three service departments, Administration, Maintenance and security and two production departments, Machining and Assembly. Total Manufacturing overhead was either directly traced or allocated to all of the departments resulting gin a total of $300,000 of overhead in the Maintenance Department, $240,000 in the administration department, $135,000 in the security department, $1,000,000 in the machining department and $300,000 in the assembly department. The company allocates service department cost using the step method. The maintenance department overhead is allocated...
Please also show how you got each number! Thanks Problem 11-54 Cost Allocation: Step and Reciprocal...
Please also show how you got
each number! Thanks
Problem 11-54 Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4) Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded: Using Department Maintenance Processing Administration 50% Supplying Department Processing Administration Maintenance Direct cost 0 Branches 10% 60% 20% $4,400,000 Electronic 40% 40% 50% $1,700,000 15% $84,000 15% $540,000...
instructions help Homework #11 - Chapter 11 Question 1 (of 4) Save & Exit Submit 1...
instructions help Homework #11 - Chapter 11 Question 1 (of 4) Save & Exit Submit 1 value: 5.00 points Problem 11-54 Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4) Great Easterm Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded: Using Department Maintenance Supplying Department Processing Electronic 40% 40% 60% $1,750,000 Processing Administration Branches 10% 60% 15% 50%...
Midland Resources has two production departments (Fabrication
and Assembly) and three service departments (Engineering,
Administration, and Maintenance). During July, the following costs
and service department usage ratios were recorded:
Supplying Department
Using Department
Engineering
Administration
Maintenance
Fabrication
Assembly
Engineering
0
60
%
0
20
%
20
%
Administration
15
%
0
10
%
50
%
25
%
Maintenance
0
20
%
0
20
%
60
%
Direct cost
$
58,000
$
329,000
$
50,000
$
270,000
$
90,000
Required:
Allocate...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Engineering Supplying Department Engineering Administration Maintenance Direct cost Using Department Administration Maintenance 40% 25% 20% $246,500 $40,000 20% Fabrication 15% 45% 30% $220,000 Assembly 45% 10% 50% $80,000 $38,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Allocated to:...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. 0.76 points Engineering Fabrication 15% Supplying Department Engineering Administration Maintenance Direct cost 20% Using Department Administration Maintenance 40% 25% 20% $ 222,800 $40,000 45% 30% $ 205,000 45% 10% 50% $50,000 $32,000 eBook Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. 1.15 points Engineering Supplying Department Engineering Administration Maintenance Direct cost Using Department Administration Maintenance Fabrication 40% 0 15% 25% 45% 30% 15% $248,550 $ 45,000 $230,000 Skipped 208 Assembly 45% 10% 55% $80,000 $ 42,000 eBook References Required: Allocate the service department costs to the two operating departments using the reciprocal...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Engineering Assembly 20% Supplying Department Engineering Administration Maintenance Direct cost 15% Using Department Administration Maintenance 60% 10% 30% $274,500 $45,000 Fabrication 20% 50% 15% $245,000 25% $48,000 55% $80,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Allocated to:...
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Engineering Supplying Department Engineering Administration Maintenance Direct cost Using Department Administration Maintenance 60% Fabrication 20% 15% Assembly 20% 25% lex Sex 2ex 20% $ 298,000 $52,000 60% $45,000 $255,000 $90,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Allocated...
Please also show how you got
each number! Thanks
Problem 11-54 Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4) Great Eastern Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded: Using Department Maintenance Processing Administration 50% Supplying Department Processing Administration Maintenance Direct cost 0 Branches 10% 60% 20% $4,400,000 Electronic 40% 40% 50% $1,700,000 15% $84,000 15% $540,000...
instructions help Homework #11 - Chapter 11 Question 1 (of 4) Save & Exit Submit 1 value: 5.00 points Problem 11-54 Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4) Great Easterm Credit Union (GECU) has two operating departments (Branches and Electronic) and three service departments (Processing, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded: Using Department Maintenance Supplying Department Processing Electronic 40% 40% 60% $1,750,000 Processing Administration Branches 10% 60% 15% 50%...
Most questions answered within 3 hours.
-
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 16 minutes ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 41 minutes ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 1 hour ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 1 hour ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 1 hour ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 1 hour ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 1 hour ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 2 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 3 hours ago -
PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I
DESPERATELY NEED HELP
Consider...
asked 3 hours ago -
DO NOT ANSWER IF YOU ARE UNSKILLED IN THIS AREA! TYPE OR WRITE
EACH ANSWER CLEARLY!!...
asked 3 hours ago -
how many moles of sodium are there in 3.41 moles of the
following compounds
NaCl
Na2SO4...
asked 3 hours ago