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 |
For a given support department serving other support departments, the department’s complete reciprocated cost is always...
QUESTION 18 For a given support department serving other support departments, the department's complete reciprocated cost is always _than its actual cost O a Smaller b. The same Larger
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—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 such as Quality 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 Budgeted Machine-hours - - 50,000 - 50,000 Budgeted Direct manufacturing labor-hours - - - 25,000 25,000 Budgeted units of service: - Quality...
The managers of Yoyodyne Propulsion Systems are discussing ways to allocate the cost of support departments such as Quality 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 Budgeted Machine-hours - - 50,000 - 50,000 Budgeted Direct manufacturing labor-hours - - - 25,000 25,000 Budgeted units of service: - Quality...
Support department cost allocation Blue Mountain Masterpieces produces pictures, paintings, and other home decor. The Printing and Framing production departments are supported by the Janitorial and Security departments. Janitorial costs are allocated to the production departments based on square feet, and security costs are allocated based on asset value. Information about these departments is detailed in the following table: Janitorial Department Security Department Printing Department Framing Department Square feet 760 1,040 4,230 4,770 Asset value $900 $1,240...
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...
Cost Drivers for Support Department Allocations For each of the following support departments, select the cost driver listed that is most appropriate for allocating support department costs to responsible units. Your answer should include the number of the cost driver only. Cost drivers to choose from: Number of conference attendees Number of computers Number of employees trained Number of cell phone minutes used Number of purchase requisitions Number of sales invoices Number of payroll checks Number of travel claims Support...
Cost Drivers for Support Department Allocations For each of the following support departments, select the cost driver listed that is most appropriate for allocating support department costs to responsible units. Your answer should include the number of the cost driver only. Cost drivers to choose from: Number of conference attendees Number of computers Number of employees trained Number of cell phone minutes used Number of purchase requisitions Number of sales invoices Number of payroll checks Number of travel claims Support...
Support department cost allocation direct method Becker Tabletops has two support departments (anitorial 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 Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Sare feet 5.000 1,000 4,000 Number of employees 10 3 30 10 Allocate the support department costs to the production...