Direct method of allocation to production departments: | |||||
Repair | Utilities | Assembly | Fabricating | finishing | |
Costs | $8,000,000 | $10,000,000 | $4,000,000 | $3,500,000 | $4,500,000 |
Repair cost allocation (6000:10000:9000) |
-$8,000,000 | $1,920,000 | $3,200,000 | $2,880,000 | |
Utilities cost allocation (25000:30000:45000) |
-$10,000,000 | $2,500,000 | $3,000,000 | $4,500,000 | |
Total cost | $0 | $0 | $8,420,000 | $9,700,000 | $11,880,000 |
b) Allocation to the production using the step method : | |||||
Repair | Utilities | Assembly | Fabricating | finishing | |
Costs | $8,000,000 | $10,000,000 | $4,000,000 | $3,500,000 | $4,500,000 |
Repair cost allocation (15:6:10:9) |
-$8,000,000 | $3,000,000 | $1,200,000 | $2,000,000 | $1,800,000 |
Utilities cost allocation (7:25:30:45) |
-$13,000,000 | $3,250,000 | $3,900,000 | $5,850,000 | |
Total cost | $0 | $0 | $8,450,000 | $9,400,000 | $12,150,000 |
c) Explanation for difference.
In Direct Method , Cost of Repair and utilities allocated on Assembly , Fabricating and Finishing deparement allocated direclty on the basis of labour hour and square footage.
However , in step down method first Allocate Repair cost on Utiliity , along with production Department and then allocate utility cost on Repair , Production department.
Quantum currently allocates their repair and utility dollars to their assembly, fabricating, and finishing department using the direct method of service center cost allocation. Repair dollars are all...
Please can i get an answer to these questions, especially question C th-/mail/inbox Sign in MBAS40HomeworkDueWeek5 Compatibility Mode - Saved to this PC Layout References Mailings Review View Help Tell me what you want to do Quantum (11 points Quantum currently allocates their repair and utility dollars to their assembly, fabricating, and finishing department using the direct method of service center cost allocation. Repair dollars are allocated using direct labor hours and utility dollars are allocated using square footage. DLH...
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...
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...
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Square Feet Number of Employees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Cafeteria Department incurs costs of $500,000, how much of that cost is...
Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Square Feet Number of Employees Janitorial Department 100 20 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Cafeteria Department incurs costs of $500,000, how much of that cost is...
Using the direct method, Pone HI Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafetaria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly Number of Square Feet Employees Janitorial Department 100 Cafeteria Department 10,000 10 Cutting Department 2,000 60 Assembly Department 8,000 20 If the Janitorial Department incurs costs of $200,000, how much of that cost is allocated...
10 Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Number of Square Feet Employees Janitorial Department 100 20 Cafeteria Department 10,000 Cutting Department 2,000 Assembly Department 8,000 If the Janitorial Department Incurs costs of $200,000, how much of that cost is allocated to...
Sequential (Step) 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 $170,000 $330,000 $114,600 $91,000 Normal activity: Number of employees — 50 70 160 Square footage 1,100 — 5,900 13,000 Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of...