At the Spring Valley Company, the cost of the personnel department has always been charged to...

Question

Question

At the Spring Valley Company, the cost of the personnel department has always been charged to...

At the Spring Valley Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.

Total personnel department costs are $283,000.

Department	A	B	C
Number of employees	70	285	225
Number of new hires	30	15	14

Which cost estimation method is being used by Spring Valley Company?

A. the account analysis method

B. the simple regression method

C. the marginal costing method

D. the conference method

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Conference Method estimates cost functions on the basis of analysis and opinions about Various costs, types of costs and thei

Add a comment

Answer 2

Similar Homework Help Questions

At the Spring Valley Company, the cost of the personnel department has always been charged to...

At the Spring Valley Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs. Total personnel department costs are $299,000. B Department Number of employees Number of new hires A 50 275 230 30 19 15 Which cost estimation method is being used by Spring Valley Company? A. the...
V.. The cost of the personnel department at the Miller Company has always been charged to...

V.. The cost of the personnel department at the Miller Company has always been charged to the production departments based upon number of employees. Recently, opinions gathered from the department managers indicated that the number of new hires might also be a predictor of personnel costs to be assigned. Total personnel department costs are $120,000. Department Department Department А B с Cost Driver Number of employees 300 250 50 The number of new hires 15 25 10 Required: Using the...
THE THIS 4) The cost of the personnel department at the Miller Company has always been...

THE THIS 4) The cost of the personnel department at the Miller Company has always been charged to the production departments based upon number of employees. Recently, opinions gathered from the department managers indicated that the number of new hires might also be a predictor of personnel costs to be assigned. Total personnel department costs are $120,000 ently be used points will of this method costs is le 4) WE LE M d into fine Department various les Cost Driver...

Hotchkiss Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing...

Hotchkiss Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of $90,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $9,000 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $36,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows: Maint. Dept. Person. Dept....
Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000...

Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows: Maintenance Dept. Personnel Dept. Production Dept. A Production Dept. B Standard service hours used 200 200 240...
Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two...

Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of $30,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows: MD...

Hotchkiss Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing...

Hotchkiss Company has two support departments, Maintenance Department (MD) and Personnel Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of $90,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $9,000 are allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $36,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows: Maint. Dept. Person. Dept....
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $390,000 are allocated...

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $390,000 are allocated on the basis of budgeted maintenance−hours. Personnel Department costs of $190,000 are allocated based on the number of employees. The costs of operating departments A and B are $232,000 and $348,000, respectively. Data on budgeted maintenance−hours and number of employees are as follows: Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $390,000 $190,000 $232,000 $348,000 Budgeted maintenance−hours NA 880 1,220...
Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are allocated...

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are allocated on the basis of budgeted maintenance−hours. Personnel Department costs of $140,000 are allocated based on the number of employees. The costs of operating departments A and B are $200,000 and $300,000, respectively. Data on budgeted maintenance−hours and number of employees are as follows: Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $360,000 $140,000 $200,000 $300,000 Budgeted maintenance−hours NA 860 1,210...

Jane Cooper's Department Stores allocates the costs of the Personnel and Payroll departments to three retail...

Jane Cooper's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. Copper's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows: Personnel Payroll Houseware Clothing Furniture Direct Department Cost $15,600...

At the Spring Valley Company, the cost of the personnel department has always been charged to...

Homework Answers

Add Answer to:
At the Spring Valley Company, the cost of the personnel department has always been charged to...

Post as a guest

Earn Coins