1 | Auto Division | Truck Division | |||
Total cost charged | $ 99,000 | $ 70,200 | |||
2 | Total cost allocated | $ 96,100 | $ 96,100 | ||
Workings: | |||||
1 | Auto Division | Truck Division | |||
Variable cost | $ 48,600 | (54000*0.9) | $ 48,600 | (54000*0.9) | |
Add: | Fixed cost | $ 50,400 | (72000*0.70) | $ 21,600 | (72000*0.30) |
Total cost charged | $ 99,000 | $ 70,200 | |||
2 | Auto Division | Truck Division | |||
Actual Variable cost | $ 58,100 | [116200*(54000/108000)] | $ 58,100 | [116200*(54000/108000)] | |
Add: | Actual Fixed cost | $ 38,000 | [76000*(54000/108000)] | $ 38,000 | [76000*(54000/108000)] |
Total cost allocated | $ 96,100 | $ 96,100 |
Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria...
Sharp Motor Company has two operating divisions—an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $89,000 per month plus $0.80 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 64% of the peak- period requirements, and the Truck Division is responsible...
Sharp Motor Company has two operating divisions an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $85,000 per month plus $0.60 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak period requirements. The Auto Division is responsible for 69% of the peak- period requirements, and the Truck Division...
Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $88,000 per month plus $0.90 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 71% of the peak- period requirements, and the Truck Division is responsible...
Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $75,000 per month plus $0.60 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 61% of the peak- period requirements, and the Truck Division is responsible...
Sharp Motor Company has two operating divisions—an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $71,000 per month plus $0.40 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 65% of the peak-period requirements, and the Truck Division is responsible for...
Problem 11B-4 Service Department Charges (LO11-6] Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $79,000 per month plus $0.70 per meal served. The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak period requirements. The Auto Division is responsible for 71% of the peak period...
Problem 11B-4 Service Department Charges [LO11-6] Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $86,000 per month plus $0.50 per meal served The company pays all the cost of the meals. The fixed costs of the cafeteria are determined by peak period requirements. The Auto Division is responsible for 66% of the peak period...
Chapter 11 Problems Saved Help Save & Exit Submit Check my work Sharp Motor Company has two operating divisions-an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $88,000 per month plus $0.70 per meal served. The company pays all the cost of the meals The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for...
Leslie Company operates a cafeteria for the benefit of its employees. The company subsidizes the cafeteria heavily by allowing employees to purchase meals at greatly reduced prices. Budgeted and actual costs in the cafeteria for the year just ended are as follows: Budgeted Actual Variable costs* $ 704,250 $ 638,350 Fixed costs $ 396,000 $ 417,000 *Unrecovered cost after deducting amounts received from employees. Costs of the cafeteria are charged to producing departments on the basis of the number of...
Wollan Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $44 per shipment. The Logistics Department's fixed costs are budgeted at $391,700 for the year. The fixed costs of the Logistics Department are determined based on peak-period demand. Percentage of Peak- period Capacity Required 45% 55% Budgeted Shipments 1,730 5,630 East Division West Division At the end of the year, actual...