Bower Company manufactures a product in a factory that has two producing departments, Cutting and Stitching, and two support departments, D1 and D2. The activity driver for D1 is the number of employees, and the activity driver for D2 is the number of machine hours. The following data pertain to Bower:
Support Departments | Producing Departments | ||||
D1 | D2 | Cutting | Stitching | ||
Direct costs | $210,000 | $165,000 | $130,000 | $78,500 | |
Normal activity: | |||||
Number of employees | - | 40 | 80 | 170 | |
Machine hours | 800 | - | 15,000 | 5,000 |
Required:
A. Calculate the cost assignment ratios to be used under the direct method for D1 and D2. Round your answers to two decimal places.
D1 | D2 | |
Cutting | ||
Stitching |
B. Allocate the support department costs to the producing departments by using the direct method. If an amount box does not require an entry, leave it blank or enter "0". Enter all amounts as positive numbers.
Support Departments | Producing Departments | |||||||||||
D1 | D2 | Cutting | Stitching | |||||||||
Direct costs | $210,000 | $165,000 | $130,000 | $78,500 | ||||||||
Allocate D1 | ||||||||||||
Allocate D2 | ||||||||||||
Total | $ | $ | $ | $ |
Bower Company manufactures a product in a factory that has two producing departments, Cutting and Stitching,...
Appendix 4B) Assigning Support Department Costs by Using the Direct Method Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and 52. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to Quillen: Support Departments Producing Departments si Cutting Sewing Direct costs $180,000 $150,000 $122,000 $90,500 S2 Normal activity: Number of employees 63...
Appendix 4B) Assigning Support Department Costs by Using the Direct Method uillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support epartments, Si and S2. The activity driver for Si is number of employees, and the activity driver for S2 is number of naintenance hours. The following data pertain to Quillen: Support Departments Producing Departments s1 s2 Cutting Sewing Direct costs $180,000 $150,000 Normal activity: Number of employees 63 147 Maintenance...
Sequential Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $400,000 $160,000 $43,000 $74,000 Square footage — 2,700 5,400 5,400 Number of receiving orders 300 — 1,680 1,020 Direct labor hours — — 25,000 40,000 The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the costs of the support departments using...
Sequential Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Support Departments Producing Departments General Factory Receiving Assembly Finishing Direct overhead $400,000 $160,000 $43,000 $74,000 Square footage 2,700 5,400 5,400 Number of receiving orders 300 1,680 1,020 Direct labor hours 25,000 40,000 The support departments are ranked in order of highest cost to lowest cost. Required: 1. Allocate the costs of the support departments using the sequential method. (Use...
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs $160,000 $340,000 $114,600 $93,000 Normal activity: Number of employees 60 80 120 170 Square footage 1,000 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on...
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs $160,000 $340,000 $114,600 $93,000 Normal activity: Number of employees — 60 80 170 Square footage 1,000 — 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated...
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs $160,000 $340,000 $114,600 $93,000 Normal activity: Number of employees — 60 80 170 Square footage 1,000 — 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated...
Direct Method of Support Department Cost Allocation Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly. Support Departments Producing Departments Human Resources General Factory Fabricating Assembly Direct costs $150,000 $330,000 $114,200 $94,000 Normal activity: Number of employees — 60 80 170 Square footage 1,000 — 5,700 13,300 The costs of the Human Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated...
Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). Relevan details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Cafeteria Cutting Assembly Department Department Department Department Department costs $310,000 $169,000 $1,504,000 $680,000 Square feet 50 5,000 1,000 4,000 Number of employees Allocate the support department costs to the production departments using the sequential method. Allocate the support department...
Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Producing Departments Support Departments General Factory Receiving Finishing Assembly $43,000 Direct overhead $400,000 $160,000 $74,000 5,400 Square footage Number of receiving orders 2,700 - 5,400 1,680 1,020 Direct labor hours - 25,000 40,000 The company has decided to simplify its method of allocating support service costs by switching to the direct method. Required: 1. Allocate the costs of the...