Question

12. The Clothes Ltd. has a Store Department and a HR Department that provide services to three Production Departments. The St

0 0
Add a comment Improve this question Transcribed image text
Answer #1

HR

Store

Production 2

Budget

$54000

$31760

Allocate HR cost

($54000)

($54000 * 5.4/90)

=$3240

($54000 * 45/90)

=$27000

Allocate Store Cost

($35000)

($35000 * 25000/70000)

=$12500

Option C is correct

Add a comment
Know the answer?
Add Answer to:
12. The Clothes Ltd. has a Store Department and a HR Department that provide services to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • White Company has two service departments and two operating (production) departments. The Payroll Department services all...

    White Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Service Depts. Production Depts. Payroll Maintenance Milling Assembly Direct costs $20,400 $25,500 $76,500 $105,400 No. of personnel 15 15 45...

  • Rowe Industries Ltd operates a manufacturing plant with three production departments: Machining, Assembly and Finishing, and...

    Rowe Industries Ltd operates a manufacturing plant with three production departments: Machining, Assembly and Finishing, and three service departments: Canteen, Store and Engineering Shop, as shown in Table 1. TABLE 1: DETAILS OF PRODUCTION AND SERVICE DEPARTMENTS Details Machining Assembly Finishing Store Canteen Engineering Shop Allocated Overhead $586 000 $418 000 $322 000 $118 000 $115 000 $158 000 Number of Employees 40 75 60 10 – 15 Number of Orders 100 80 125 – – 55 Service Hours 1500...

  • Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all...

    Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Production Depts. Service Depts. Payroll $24,400 Maintenance Milling $96,500 Assembly $145,400 $35,500 Direct costs No. of personnel Sq. ft. of...

  • Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all...

    Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Service Depts. Production Depts. Payroll Maintenance Cutting Assembly Direct costs $ 29,400 $ 34,500 $ 85,500 $ 114,400 No. of...

  • Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s...

    Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: Budget Actual Variable costs for lubricants $ 325,600 * $ 417,280 Fixed costs for...

  • 2. Biden Department Store has four departments: men's, women's, children's, and electronics. The following information is...

    2. Biden Department Store has four departments: men's, women's, children's, and electronics. The following information is provided: Floor space Men's 10,000 sq ft $35,000 Women's 20,000 sq ft $75,000 Children's 8,000 sq.ft $20,000 Electronics 2,000 sq ft $12.000 Sales The company's accountant needs to allocate the store's annual rent of $160,000. Required: 1) Compute the allocation rate that should be used to allocate the rent cost to the four departments 1 2) Compute the amount of rent that should be...

  • Vortex Company operates a retail store with two departments. Information about those departments follows. Department A...

    Vortex Company operates a retail store with two departments. Information about those departments follows. Department A $825, 500 475, 000 Department B $444, 500 288, 925 Sales Cost of goods sold Direct expenses Salaries 115, 000 19, 500 20, 500 20,500 6, 500 87, 000 10, 300 24, 500 12, 500 5, 800 Insurance Utilities Depreciation Maintenance The company also incurred the following indirect costs. Salaries $32,000 6,800 14, 800 49,000 Insurance Depreciation office expenses Indirect costs are allocated as...

  • Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming De...

    Tasman Products, Ltd., of Australia has a Maintenance Department that services the equipment in the company’s Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow: 1. How much Maintenance Department cost should be charged to the Forming Department and...

  • Tasman Products, Ltd., of Australla has a Maintenance Department that services the equipment in the company's...

    Tasman Products, Ltd., of Australla has a Maintenance Department that services the equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments on the basis of machine-hours. Cost and other data relating to the Maintenance Department and to the other two departments for the most recent year are presented below. Data for the Maintenance Department follow Budget $325,500 $417,150 $210,000 Actual Variable costs for lubricants Fixed costs for salaries and...

  • Question 3 30 Marks Chineke Ltd has two production cost centers: Assembly and Cutting, and one...

    Question 3 30 Marks Chineke Ltd has two production cost centers: Assembly and Cutting, and one service cost center Human resources. The following budgeted information was supplied for the next financial pernod Budgeted overhead Building repairs Cafeteria cost Factory item Cost lighting N$130 000 Maintenance of machine N$48 000 N$60 000 N$44 000 Additional information: Numbers Estimated CubicEstimated Value of Estimated employees hours Departments of labour capacity machine Buildings labour cost Human resour Assembly Cutting 20 50 140 2000 1000...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT