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. |
Person. |
Dept. |
Dept. |
|
|
Standard service hours used |
400 |
200 |
1,200 |
600 |
|
Number of employees |
20 |
40 |
180 |
180 |
|
Direct labor hours |
200 |
200 |
1,000 |
1,000 |
What are the total overhead costs associated with P2 after
allocating the Maintenance and Personnel Departments using the
direct method?
a.$94,500
b.$48,000
c.$90,000
d.$99,000
Diane's Pottery Manufacturing Company has two support
departments, Maintenance Department and Personnel Department, and
two producing departments, X and Y. 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 X and Y are $9,000 and $15,000, respectively.
Data on standard service hours and number of employees are as
follows:
|
Maint. |
Person. |
Dept. |
Dept. |
|
|
Dept. |
Dept. |
X |
Y |
|
|
Standard service hours used |
100 |
75 |
600 |
300 |
|
Number of employees |
50 |
100 |
150 |
150 |
|
Direct labor hours |
125 |
125 |
500 |
250 |
What are the total overhead costs associated with Department Y
after allocating the Maintenance and Personnel Departments using
the direct method?
a.$27,250
b.$15,000
c.$25,000
d.$17,250
Homework Answers
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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...
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....
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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...
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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...
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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 $120,000 are allocated based on the number of employees. The costs of operating departments A and B are $192,000 and $288,000, 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 $120,000 $192,000 $288,000 Budgeted maintenance−hours NA 820 1,290...
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Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $360,000 are alloca...
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 $150,000 are allocated based on the number of employees. The costs of operating departments A and B are $204,000 and $306,000, 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 $150,000 $204,000 $306,000 Budgeted maintenance−hours NA 860 1,200...
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