15-16 Single-rate versus dual-rate methods, support department. The Cincinnati power plant that services all manufacturing departments...
15-16 Single-rate versus dual-rate methods, support department.
The Cincinnati power plant that services all manufacturing departments of Eastern Mountain Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms:
Manufacturing Department Needed at Practical Capacity Production Level (Kilowatt- Hours) Average Expected Monthly Usage (Kilowatt - Hours)
Loretta 13,000 10,000
Bently 21,000 9,000
Melboum 14,000 10,000
Eastmoreland 32,000 11,000
Total 80,000 40,000
The expected monthly costs for operating the power plant during the budget year are $20,000: $8,000 variable and $12,000 fixed.
Assume that a single cost pool is used for the power plant costs. What budgeted amounts will be allocated to each manufacturing department if (a) the rate is calculated based on practical capacity and costs are allocated based on practical capacity and (b) the rate is calculated based on expected monthly usage and costs are allocated based on expected monthly usage?
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15-16 Single-rate versus dual-rate methods, support
department.
The Cincinnati power plant that services all manufacturing
departments...
Upuug uit power plant uuring the budget year are $18,000 $9,000 variable and $9,000 fixed. at...
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Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc.,...
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Upuug uit power plant uuring the budget year are $18,000 $9,000 variable and $9,000 fixed. at a single cost pool is used for the power plant costs. What budgeted amounts will be allocated to each manufacturing department in Requirements 1. Assume that a single cost pool is used for the power plant costs. What budgeted amounts will be allocated to each manufacturing department if (a) the rate is calculated based on practical capacity and costs are allocated based on practical...
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manufacturing overhead costs $3,660,000 Actual machine-hours 196,000 1. Calculate the budgeted manufacturing overhead rate. 2 Calculate the manufacturing overhead allocated during 2017 3. Calculate the amount of under-or overallocated manufacturing overhead. Why do Taylor's managers need to calculate this amount? 4-25 Job costing, accounting for manufacturing overhead, budgeted rates. The Matthew Company uses Seormal job-costing system at its Minneapolis plant. The plant has a machining department and an assem- bly department. Its job-costing system has two direct-cost categories (direct materials...
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Flexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2019 with the following manufacturing overhead cost budget based on 4,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (4,000 Hours) For the Month of April 2019 Variable costs: Factory supplies $100,000 Indirect labor 152,000 Utilities 68,000 Patent royalties on secret process 296,000 Total variable overhead Fixed costs: Supervisory salaries 160,000 Depreciation on factory equipment 144,000 Factory taxes 48,000 Factory insurance 32,000 Utilities...
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