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QUESTION 18 For a given support department serving other support departments, the department's complete reciprocated cost...
For a given support department serving other support departments, the department’s complete reciprocated cost is always...
For a given support department serving other support departments, the department’s complete reciprocated cost is always _______ than its actual cost. a. Smaller b. The same c. Larger
Reciprocal Method of Support Department Cost AllocationValron Company has two support departments, Human Resources and...
Reciprocal Method of Support Department Cost AllocationValron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.Support DepartmentsProducing DepartmentsHumanResourcesGeneralFactoryFabricatingAssemblyDirect costs$170,000$330,000$114,200$95,000Normal activity:Number of employees—6080170Square footage1,000—5,70013,300The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage.Now assume that Valron Company uses the reciprocal method to allocate support department costs.Required:1. Calculate the allocation ratios (rounded to four...
Support Department Cost Allocation-Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company's...
Support Department Cost Allocation-Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $255,000. The total cost of the Cafeteria Department is $263,000. The number of employees and the square footage in...
Support department cost allocation—comparison Becker Tabletops has two support departments ( Janitorial and Cafeteria) a...
Support department cost allocation—comparison Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Department Cafeteria Department Cutting Department Assembly Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet 50 5,000 1,000 4,000 Number of employees 10 3 30 10 Allocated the support department costs to the production...
The managers of Yoyodyne Propulsion Systems are discussing ways to allocate the cost of support departments...
The managers of Yoyodyne Propulsion Systems are discussing ways to allocate the cost of support departments such as dua ty Control and Maintenance to the Machining and Assembly production departments. To aid them in this discussion, the controller has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation $350,000 $200,000 $400,000 $300,000 $1,250,000 50,000 50,000 Budgeted Machine-hours Budgeted Direct manufacturing labor hours 25,000 25,000 Budgeted units of service: - Quality Control 7,000 21,000 18,000...
10 Support Department Cost Allocation-Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The...
10 Support Department Cost Allocation-Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $268,000. The total cost of the Cafeteria Department is $518,000. The number of employees and the square footage...
Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting...
Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 6,800 11,200 Asset value $2,000...
Support department cost allocation—comparison Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two...
Support department cost allocation—comparison Becker Tabletops has two support departments ( Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Department Cafeteria Department Cutting Department Assembly Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet 50 5,000 1,000 4,000 Number of employees 10 3 30 10 Allocated the support department...
Support department cost allocation-reciprocal services method Davis Snowflake Coproduces Christmas stockings in its Cutting and Sewing...
Support department cost allocation-reciprocal services method Davis Snowflake Coproduces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine Hours 800 2,000 7,200 10,800 Asset value $2.000 $1,470 $1,500...
Direct method of support department cost allocation: bank aewide Bank has two support departments: the Human...
Direct method of support department cost allocation: bank aewide Bank has two support departments: the Human Resources Department and the Computing Department. The bank also has two departments that service customers directly: the (LOO] Computing Deposits Department and the Loans Department. The usage of the two support departments output in the year just ended was as follows: Provider of service Computing 20% Human Resources User of service Human Resources Computing Deposits Loans 2096 50% 30% 60% 20% The budgeted costs...
Support Department Cost Allocation-Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $255,000. The total cost of the Cafeteria Department is $263,000. The number of employees and the square footage in...
The managers of Yoyodyne Propulsion Systems are discussing ways to allocate the cost of support departments such as dua ty Control and Maintenance to the Machining and Assembly production departments. To aid them in this discussion, the controller has provided the following information: Quality Control Maintenance Machining Assembly Total Budgeted overhead costs before allocation $350,000 $200,000 $400,000 $300,000 $1,250,000 50,000 50,000 Budgeted Machine-hours Budgeted Direct manufacturing labor hours 25,000 25,000 Budgeted units of service: - Quality Control 7,000 21,000 18,000...
10 Support Department Cost Allocation-Reciprocal Services Method Blue Africa Inc. produces laptops and desktop computers. The company's production activities mainly occur in what the company calls its Laser and Forming departments. The Cafeteria and Security departments support the company's production activities and allocate costs based on the number of employees and square feet, respectively. The total cost of the Security Department is $268,000. The total cost of the Cafeteria Department is $518,000. The number of employees and the square footage...
Support department cost allocation-reciprocal services method Davis Snowflake & Co. produces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings. Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine hours 800 2,000 6,800 11,200 Asset value $2,000...
Support department cost allocation-reciprocal services method Davis Snowflake Coproduces Christmas stockings in its Cutting and Sewing departments. The Maintenance and Security departments support the production of the stockings Costs from the Maintenance Department are allocated based on machine hours, and costs from the Security Department are allocated based on asset value. Information about each department is provided in the following table: Maintenance Security Cutting Sewing Department Department Department Department Machine Hours 800 2,000 7,200 10,800 Asset value $2.000 $1,470 $1,500...
Direct method of support department cost allocation: bank aewide Bank has two support departments: the Human Resources Department and the Computing Department. The bank also has two departments that service customers directly: the (LOO] Computing Deposits Department and the Loans Department. The usage of the two support departments output in the year just ended was as follows: Provider of service Computing 20% Human Resources User of service Human Resources Computing Deposits Loans 2096 50% 30% 60% 20% The budgeted costs...
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