Please describe question in detail
Part A
Personal |
Business |
|
Allocated costs |
$43737 |
$25513 |
Accounts receivable cost ÷ bills prepared = 69250/950 = $72.89 per bill
Personal = 69250*600/950 = $43737
Business = 69250*350/950 = $25513
Personal |
Business |
|
Billing |
21000 |
12250 |
Dispute resolution |
27000 |
9000 |
Total allocated costs |
$48000 |
$21250 |
Billing
Personal = (33250*600/950) = 21000
Business = (33250*350/950) = 12250
Dispute resolution
Personal = (36000*60/80) = 27000
Business = (36000*20/80) = 9000
Please describe question in detail John's Custom Computer Shop (JCCS) assembles computers for both individual and...
John’s Custom Computer Shop (JCCS) assembles computers for both individual and corporate customers. The company is organized into two divisions: Personal and Business. Once a computer is built, it is shipped to the customer. Billing for all customers is handled by the corporate Accounts Receivable Department. Accounts Receivable performs two major activities: billing and dispute resolution. Billing refers to preparing and sending the bills as well as processing the payments. Dispute resolution occurs when a customer refuses to pay, usually...
The Personnel Department at LastCall Enterprises handles many administrative tasks for the two divisions that make up LastCall: LaidBack and StressedOut. LaidBack division manages the company’s traditional business line. This business, although lucrative, is currently not growing. StressedOut, on the other hand, is the company’s new business, which has experienced double-digit growth for each of the last three years. The cost allocation system at LastCall allocates all corporate costs to the divisions based on a variety of cost allocation bases....
The Personnel Department at LastCall Enterprises handles many administrative tasks for the two divisions that make up LastCall: Laidback and StressedOut. LaidBack division manages the company's traditional business line. This business, although lucrative, is currently not growing. Stressed Out, on the other hand, is the company's new business, which has experienced double-digit growth for each of the last three years. The cost allocation system at LastCall allocates all corporate costs to the divisions based on a variety of cost allocation...
The Personnel Department at LastCall Enterprises handles many administrative tasks for the two divisions that make up LastCall: LaidBack and StressedOut. LaidBack division manages the company’s traditional business line. This business, although lucrative, is currently not growing. StressedOut, on the other hand, is the company’s new business, which has experienced double-digit growth for each of the last three years. The cost allocation system at LastCall allocates all corporate costs to the divisions based on a variety of cost allocation bases....
A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $8.99 million. The following information is given: Gigabytes of Storage 95,700 65,200 Number of Consultants Corporate Government 130 190 Required: What is the cost allocation if fixed computer costs of $6.28 million are allocated on the basis of number of consultants and the remaining costs (all variable) are allocated on the basis of the number of gigabytes of...
A consulting firm has two departments, Corporate and Government, Computer support is common to both departments. The cost of computer support is $8.29 milion. The following information is given: Gigabytes of Storage 91,400 54,400 Number of Consultants Corporate Government 155 170 Required: What is the cost allocation if fixed computer costs of $5.23 million are allocated on the basis of number of consultants and the remaining costs (all variable) are allocated on the basis of the number of gigabytes of...
A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $11.24 million. The following information is given: Gigabytes of Storage Number of Consultants Corporate 105,000 135 Government 58,200 175 Required: What is the cost allocation if fixed computer costs of $7.31 million are allocated on the basis of number of consultants and the remaining costs (all variable) are allocated on the basis of the number of gigabytes of...
A consulting firm has two departments, Corporate and Government. Computer support is common to both departments. The cost of computer support is $9.51 million. The following information is given: Gigabytes of Number of Consultants Storage 98,800 55,300 Corporate 130 170 Government Required: What is the cost allocation if fixed computer costs of $6.67 million are allocated on the basis of number of consultants and the remaining costs (all variable) are allocated on the basis of the number of gigabytes of...
Question 2
Lackawanna Community College has three divisions: Liberal Arts, Sciences, and Business Administration. The college's comptroller is trying to decide how to allocate the costs of the Admissions Department, the Registrar's Department, and the Computer Services Department. The comptroller has compiled the following data for the year just ended. Department Admissions Registrar Computer Services Annual Cost $127,000 215,000 456,000 Division Liberal Arts Sciences Business Administration Budgeted Budgeted Enrollment Credit Hours 2,000 40,000 1,300 35,500 1,200 29,500 Planned Courses Requiring...
Profit Center Responsibility Reporting Championship Sports Inc. operates two divisions—the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adjustments, including those for inventories, were recorded and posted: Sales—Winter Sports Division $8,900,000 Sales—Summer Sports Division 16,400,000 Cost of Goods Sold—Winter Sports Division 5,000,000 Cost of Goods Sold—Summer Sports Division 9,000,000 Sales Expense—Winter Sports Division 650,000 Sales...