Traditional two-stage cost allocation means that indirect costs are first allocated to both operating and service...
Traditional two-stage cost allocation means that indirect costs are first allocated to both operating and service departments, then operating department costs are allocated to service departments.
Select one: True False
Homework Answers
Answer
- Statement is FALSE.
- In two stage cost allocation, service department costs are allocated to Operating departments or producing department.
- Then, allocated cost to producing/operating department are allocated to various products/jobs based on various application rates.
- Operating department costs are never allocated to Service departments.
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Traditional two-stage cost allocation means that indirect costs
are first allocated to both operating and service...
Which of the following is true? Cost allocation is a way to distribute costs from support...
Which of the following is true? Cost allocation is a way to distribute costs from support departments to revenue-producing departments. In the step-down cost-allocation method, the order which support areas are allocated can affect the organization's total costs. In the step-down method, the indirect department that receives the least amount of service from other indirect departments and provides the most service to other departments allocates its cost last. All of them are false
TRUE or FALSE? In the second-stage allocation in activity-based costing, costs that were allocated in the...
TRUE or FALSE? In the second-stage allocation in activity-based costing, costs that were allocated in the first stage are assigned to products. O True O False
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number
BluStar Company has two service departments, Administration and Accounting, and two operating departments, Domestic and International. Administration costs are allocated on the basis of employees, and Accounting costs are allocated on the basis of number of transactions. A summary of BluStar operations follows. AdministrationAccountingDomesticInternationalEmployees–294526Transactions36,000–20,00080,000Department direct costs$361,000$149,000$960,000$3,700,000Required:a. Allocate the cost of the service departments to the operating departments using the direct method.b. Allocate the cost of the service departments to the operating departments using the step method. Start with Administration.c. Allocate the cost of the...
Allie, Inc. has two service departments and two operating departments. Allie allocates service department costs using...
Allie, Inc. has two service departments and two operating departments. Allie allocates service department costs using the step-down method, with the service department with the highest cost allocated first. Initial cost for service department 1 was $140,000, and for service department 2, $100,000. Service department 1 is allocated on the basis of department employees, while service department 2 is allocated on the basis of square feet. Cost driver usage is as follows: Service 1 Service 2 Operating 1 Operating...
Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $...
Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25,000 and purchasing department expenses of $56,200 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $ 186,200 95,000 98,800 $ 380,000 Purchase Orders 546 364 390 1,300 Complete the following table by allocating the expenses of the two...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 tising department expenses of $48,200...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 tising department expenses of $48,200 and purchasing department expenses of $40,200 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $167, 700 89,700 132,600 $390,000 Purchase Orders 1,232 756 812 2,800 Complete the following table by allocating the expenses of the two service...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25.600...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25.600 and purchasing department expenses of $40,900 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $ 210,7ee 86,eee 133,3ee $430,eee Purchase Orders 1,620 1,ese 900 3,600 Complete the following table by allocating the expenses of the two service...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $88,600...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $88,600 and purchasing department expenses of $44,300 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Purchase Orders Department Books Magazines Newspapers Total Sales $ 202,400 123,200 114,40 $ . Complete the following table by allocating the expenses of the two service departments (advertising and...
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and...
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two operating departments for the year 2017 Direct Expenses $ 20,000 30,000 128,000 19,000 Square Feet 1,680 1,260 10,290 7,770 Sales Department Advertising Administrative Shoes $179,800 130,200 Clothing The advertising department developed and distributed 130 advertisements during the year....
Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,800...
Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,800 and purchasing department expenses of $57,800 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Purchase Orders 816 Books Magazines Newspapers sales $184,900 107,500 137.600 $430,000 476 Total Complete the following table by allocating the expenses of the two service departments (advertising and purchasing)...
TRUE or FALSE? In the second-stage allocation in activity-based costing, costs that were allocated in the first stage are assigned to products. O True O False
Exercise 09-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25,000 and purchasing department expenses of $56,200 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $ 186,200 95,000 98,800 $ 380,000 Purchase Orders 546 364 390 1,300 Complete the following table by allocating the expenses of the two...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 tising department expenses of $48,200 and purchasing department expenses of $40,200 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $167, 700 89,700 132,600 $390,000 Purchase Orders 1,232 756 812 2,800 Complete the following table by allocating the expenses of the two service...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $25.600 and purchasing department expenses of $40,900 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Department Books Magazines Newspapers Total Sales $ 210,7ee 86,eee 133,3ee $430,eee Purchase Orders 1,620 1,ese 900 3,600 Complete the following table by allocating the expenses of the two service...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $88,600 and purchasing department expenses of $44,300 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Purchase Orders Department Books Magazines Newspapers Total Sales $ 202,400 123,200 114,40 $ . Complete the following table by allocating the expenses of the two service departments (advertising and...
Marathon Running Shop has two service departments (advertising and administrative) and two operating departments (shoes and clothing). The table that follows shows the direct expenses incurred and square footage occupied by all four departments, as well as total sales for the two operating departments for the year 2017 Direct Expenses $ 20,000 30,000 128,000 19,000 Square Feet 1,680 1,260 10,290 7,770 Sales Department Advertising Administrative Shoes $179,800 130,200 Clothing The advertising department developed and distributed 130 advertisements during the year....
Exercise 9-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $57,800 and purchasing department expenses of $57,800 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows. Purchase Orders 816 Books Magazines Newspapers sales $184,900 107,500 137.600 $430,000 476 Total Complete the following table by allocating the expenses of the two service departments (advertising and purchasing)...
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