Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Maintenance Service Departments Utilities Overhead costs incurred $297,000 $ 636,000 Service provided to departments 5% Maintenance Utilities Producing-A Producing-B Totals Required: 10% 20 40 70 100% 55 100% What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediate calculations. Round final answers to the nearest dollar.) Producing Producing 1. The direct method 2. The step method 3. The reciprocal method Department A Department B Total Service Department Cost $ 0 $ 0 $ 0

Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Maintenance Service Departments Utilities Overhead costs incurred $297,000 $ 636,000 Service provided to departments 5% Maintenance Utilities Producing-A Producing-B Totals Required: 10% 20 40 70 100% 55 100% What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round intermediate calculations. Round final answers to the nearest dollar.) Producing Producing 1. The direct method 2. The step method 3. The reciprocal method Department A Department B Total Service Department Cost $ 0 $ 0 $ 0

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...

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To better match cost to revenues Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here. Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to: Maintenance Dept. 10% Utilities Dept. 20% Producing Dept. A 40% 30% Producing Dept. B 40% 60% Using the step method, how much of Lewisville's Corporation’s Utilities Department cost is allocated between Departments A and B? (order of allocation begins with Maintenance) Group of answer choices $9,900 $10,800 $12,740 $27,700 In order to better match cost with revenues, Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here. Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to: Maintenance Dept. 10% Utilities Dept. 20%…
Lewisville CorporationIn order to better match cost with revenues, Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here. Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to: Maintenance Dept. 10% Utilities Dept. 20% Producing Dept. A 40% 30% Producing Dept. B 40% 60% Assume that Lewisville Corporation distributes service department overhead costs based on the algebraic method. What would be the formula to determine the total maintenance costs? Group of answer choices M = $18,700 + .10U M = $9,000 + .20U M = $18,700 + .30U + .40A + .40B M = $27,700 + .40A + .40B
Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance Utilities Overhead costs incurred $ 162,000 $ 684,000 Service provided to departments Maintenance — 5% Utilities 10% — Producing—A 20 40 Producing—B 70 55 Totals 100% 100% Required: What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method?
· Deavayded departments (S1 and S2) and two producing departments (P1 and P2). Department data for April were as follows: Company has two service si P27,000 S2 Overhead costs P18,000 Services provided to: si -0- 20% S2 10% -0- 50% 40% P1 30% P2 50% What is the total allocated service department cost to P2 if the company uses the reciprocal method of allocating its service department costs? P19,800 P21,949 P22,500 P23,051
ABC Corp. distributes service department overhead costs directly to producing departments without allocation to the other service department. Information for the month of June is as follows: Service Departments Utilities Maintenance P20,000 P10,000 Overhead costs incurred. Service provided to department: Maintenance.. Utilities. 10% 20% 40% Producing-A. Producing-B. Totals. 30% 40% 100% 60% 100% The amount of Maintenance Department costs distributed to Producing-A Department for June was: P8,000 P8, 800 P10,000 P11,000
Service Department Cost Allocation Presented below are certain operating data for the four departments of Tally Manufacturing Company. Service Production 1 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $120,000 $144,000 $180,000 $196,000 Square feet of factory floor space 80,000 160,000 Number of factory workers 60 20 Planned direct labor hours for the year 40,000 60,000 Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do not round bases when calculating reallocations of service departments. Production 1 2 Identifiable and allocated overhead Reallocation of service departments: Dept. 1 Factory floor space Dept. 2 Number of factory workers Total manufacturing overhead What is the apparent overhead rate for each…
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4 Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West and East). The usage data for each of the service departments for the previous period follow: IT Accounting HR IT -- Service department costs IT allocation Accounting allocation HR allocation Total costs allocated 0% 10% Accounting HR 0% 20% 0% -- 10% $ -- The direct costs of the service departments in the previous period were $91,000 for IT, $116,000 for Accounting, and $155,000 for HR. IT West 40% 40% 60% Required: Use the direct method to allocate the service department costs to the production departments. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. East 40% 60% 20% Accounting 0 $ 0 $ Check my work HR 0 $ West 0 $ East 0
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