A company purchases a 19,320-square-foot building for $345,000. The building has two separate rental units. Unit A, which has the desirable location on the corner and contains 2,520 square feet, will be rented for $1.00 per square foot. Unit B contains 16,800 square feet and will be rented for $0.60 per square foot. How much of the joint cost should be allocated to Unit A and to Unit B using the value basis of allocation? Unit A Unit B Totals Rental value $ $ Percent of rental value Numerator Denominator % of Mkt Value 2,520 $ 2,520 $ 12,600 12,600 10,080 12,600 10,080 0.00% Joint Cost Allocated cost
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- QS 22-18C Joint cost allocation LO C3 A company purchases a 10,020-square-foot commercial building for $325,000 and spends an additional $50,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 3,340 square feet, will be rented for $1.00 per square foot. Unit B contains 6,680 square feet and will be rented for $0.75 per square foot.How much of the joint cost should be assigned to Unit B using the value basis of allocation?Exercise 22-22A (Algo) Assigning joint costs LO C2 Home Properties is developing a subdivision that includes 420 home lots. The 240 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 180 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $54,000 and for each Hilltop lot is $92,000. The developer acquired the land for $2,000,000 and spent another $2,400,000 on street and utilities improvements. Assign the joint land and improvement costs of $4,400,000 to the Canyon section and the Hilltop section using the value basis of allocation. (Do not round your intermediate calculations.) Canyon section Hilltop section Totals Sales Value Numerator Percent of Sales Value Denominator % of Sales Value 0 0 0 Cost to Allocate Allocated Cost Quantity of LotsExercise 22-22A (Algo) Assigning Joint costs LO C2 Home Properties is developing a subdivision that includes 410 home lots. The 180 lots in the Canyon section are below a ridge and do not have views of the neighboring canyons and hills; the 230 lots in the Hilltop section offer unobstructed views. The expected selling price for each Canyon lot is $47,000 and for each Hilltop lot is $96,000. The developer acquired the land for $2,400,000 and spent another $1,200,000 on street and utilities improvements. Assign the joint land and improvement costs of $3,600,000 to the Canyon section and the Hilltop section using the value basis of allocation. Note: Do not round your intermediate calculations. Canyon section Hilltop section Totals Sales Value Numerator Percent of Sales Value Denominator % of Sales Value 0 0 0 Check my wc Cost to Allocate Allocated Cost
- Exercise 15-29 (Algo) Evaluate Transfer Pricing System (LO 15-2) Southfield Division offers its product to outside markets for $124. It incurs variable costs of $49 per unit and fixed costs of $143,500 per month based on monthly production of 22,900 units. Northfield Division can acquire the product from an alternate supplier for $129 per unit or from Southwest Division for a transfer price of $124 plus $6 per unit in transportation costs. Required: a. What are the costs and benefits of the alternatives available to Southfield Division and Northfield Division with respect to the transfer of Southfield Division's product? Assume that Southfield Division can market all that it can produce. b. How would your answer change if Southfield Division had idle capacity sufficient to cover all of Northfield Division's needs? a. Net benefit b. Net benefit per unit per unit11:51 dent question Show Transcribed Text Week 4 Assignment Transfer Data The Better Chair Company manufactures high-end chairs in alpha division in a country with a 35% income tax rate and transfers these chairs to beta division in a country with a 40% income tax. An import duty of 10% of the transfer price is paid on all imported products. The import duty is not deductible in computing taxable income. The fixed cost for a high-end chair is $300 and the variable cost is $650, which brings the full cost (i.e., total cost) for each chair to $950. They are sold by beta division for $1050. The tax authorities in both countries allow firms to use either variable cost or full cost as the transfer price. Alpha Division Taxes: Transfer Price Less (subtract) Cost Taxable Income Taxes (or refund) Beta Division Taxes: Sales Price Less (subtract) Transfer Price Taxable Income Income Taxes Import Duty Taxes (or refund) Total Taxes Show Transcribed Text = رام Full Cost 0 0 4G 100.00 vop KB/S LTE 4…O d. Establishing goals Almu O e. Choosing among alternatives 128 Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,000 and the total manufacturing overhead cost is $1,220, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2.600, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) Finish a O a. 60 О. 30 Oc 38 O d. 54 O e. None of the given answers NEXT PAGE IOUS PAGE ACCT2121 Origin Ggeneral-chat ASUS TUF GAML
- QS 22-19 (Algo) Determining transfer prices with excess capacity LO C1 The Windshield division of Jaguar Company makes windshields for use in its Assembly division. The Windshield division incurs variable costs of $296 per windshield and has capacity to make 590,000 windshields per year. The market price is $520 per windshield. The Windshield division incurs total fixed costs of $3,750,000 per year. If the Windshield division has excess capacity, what is the range of possible transfer prices that could be used on transfers between the Windshield and Assembly divisions? Transfer price per windshield will be at least but not more than DravQ16 Red Company allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments: Facility location Kentucky Arizona Illinois Total New product revenue $ 66,000,000 $ 80,000,000 $ 104,000,000 $ 250,000,000 Research & Development $ 40,000,000 Using revenue as an allocation base, the amount of costs allocated to the Arizona research facility is calculated to be: Multiple Choice $15,872,000. $22,528,000. $37,500,000. $12,800,000. $9,728,000.uestion 8 M&S Company incurs the following costs to produce 10,000 units of a subassembly part: ot yet swered Direct materials OMR 0.84 arked out of Direct labor 1.125 00 Variable overhead 1.26 Flag question Fixed overhead 1.62 An outside supplier has offered to sell M&S Company the subcomponent for OMR 2.85 a unit. If M&S Company accepts the offer, by how much will net income increase (decrease)? Select one: Oa. None of the answers are correct Ob. OMR (8,850) Oc. OMR 19,950 O d. OMR 3,750 Oe. OMR (2,850)
- Service Department A Service Department B Producing Department C Producing Department D Direct costs $114,400 76,400 22,400 28,200 Proportion of service by A to: B 10% C 60% 30% D Proportion of service by B to: A 30% C 20% D 50% Using the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is:föllowing Cost Factor Site B 170,000$ Site A Price of land 100,000S Monthly cost of delivering materials S 10,000 $ 7,000 Cost of equipment setup $ 12,000 $ 9,000 Cost of utilities per month $ 1,500 1,100 For site A, an extra $ 60/ day is needed for additional site guards. a- Which site should the contractor select? b- When do the costs of two sites are equals (After how many months of work the costs are similar)?Case 17-36 Comprehensive Case on Joint Cost Allocation (LO 17-4, 17-5) Valdosta Chemical Company manufactures two industrial chemical products in a joint process. In May, 20,000 gallons of input costing $62,000 were processed at a cost of $158,000. The joint process resulted in 15,000 pounds of Resoline and 5,000 pounds of Krypto. Resoline sells for $20 per pound, and Krypto sells for $40 per pound. Management generally processes each of these chemicals further in separable processes to produce more refined chemical products. Resoline is processed separately at a cost of $6 per pound. The resulting product, Resolite, sells for $34 per pound. Krypto is processed separately at a cost of $10 per pound. The resulting product, Kryptite, sells for $95 per pound. Required: 2-a. Allocate the company's joint production costs for May using the physical-units method. 2-b. Allocate the company's joint production costs for May using the relative-sales-value method. 2-c. Allocate the company's joint…