Question
In: Accounting
A company produces a product in two departments, P1 and P2. The company has two support...
A company produces a product in two departments, P1 and P2. The company has two support departments, S1 and S2. The company allocates S1 costs to other departments based on square meters and S2 costs based on machine hours.
SUPPORT DEPARTMENTS PRODUCTION DEPARTMENTS
S1 S2 P1 P2 TOTAL
COSTS 500 120 350 150 1,120
SQUARE METERS 1000 1600 2400 4000 9000
MACHINE HOURS 200 375 1600 200 2375
TOTAL COSTS 500 120 350 150 1,120
a) (20 pts) Use the direct method to allocate support department costs. b) (40 pts) Use the sequential method to allocate support department costs. c) (40 pts) Use the reciprocal method to allocate support department costs.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2)....
Leader Company has two support departments (S1 and S2) and two
producing departments (P1 and P2). Estimated direct costs and
percentages of services used by these departments are as
follows:
Allocation of support departments
S1
S2
P1
P2
S1
-
10%
40%
50%
S2
20%
-
50%
30%
Direct costs
£4,500
£8,000
£10,000
£15,000
Required:
a.
Prepare a schedule allocating the support department costs to
the producing departments using the direct allocation method.
b.
Prepare a schedule allocating the support...
Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2)....
Leader Company has two support departments (S1 and S2) and two
producing departments (P1 and P2). Estimated direct costs and
percentages of services used by these departments are as
follows:
Allocation of support departments
S1
S2
P1
P2
S1
-
10%
40%
50%
S2
20%
-
50%
30%
Direct costs
£4,500
£8,000
£10,000
£15,000
Required:
a.
Prepare a schedule allocating the support department costs to
the producing departments using the direct allocation method.
b.
Prepare a schedule allocating the support...
Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2)....
Leader Company has two support departments (S1 and S2) and two
producing departments (P1 and P2). Estimated direct costs and
percentages of services used by these departments are as
follows:
Allocation of support departments
S1
S2
P1
P2
S1
-
10%
40%
50%
S2
20%
-
50%
30%
Direct costs
£4,500
£8,000
£10,000
£15,000
Required:
a.
Prepare a schedule allocating the support department costs to
the producing departments using the direct allocation method.
b.
Prepare a schedule allocating the support...
Leader Company has two support departments (S1 and S2) and two producing departments (P1 and P2)....
Leader Company has two support departments (S1 and S2) and two
producing departments (P1 and P2). Estimated direct costs and
percentages of services used by these departments are as
follows:
Allocation of support departments
S1
S2
P1
P2
S1
-
10%
40%
50%
S2
20%
-
50%
30%
Direct costs
£4,500
£8,000
£10,000
£15,000
Required:
a.
Prepare a schedule allocating the support department costs to
the producing departments using the direct allocation method.
b.
Prepare a schedule allocating the support...
Rose Company has two production departments: Fabricating (P1) and Finishing (P2), and three support departments: Human...
Rose Company has two production departments: Fabricating (P1)
and Finishing (P2), and three support departments: Human Resources
(S1), Plant Security (S2), and Maintenance (S3). Budgeted support
department costs and the direct overhead of the production
departments for 2020 are as follows:
Department: Budget Costs:
(S1) Human resources $80,000
(S2) Plant security $56,000
(S3) Maintenance $63,000
Department: Direct overhead:
(P1) Fabricating $280,000
(P2) Finishing $340,000
Rose allocates support department
costs using the following activity drivers: Human Resources (number
of employees), Plant...
Craylon Corp has two service departments, S1 and S2, and two production departments, P1 and P2....
Craylon Corp has two service departments, S1 and S2, and two
production departments, P1 and P2.
The data for April were as follows:
Services provided to:
Activity
Costs
S1
S2
P1
P2
S1
$100,000
25%
40%
35%
S2
$80,000
10%
55%
35%
Fixed Costs
P1
$400,000
P2
$500,000
One of the algebraic equations in linear form
for an activity using the reciprocal method is
S2 = 80,000 +.25S1
S1=100,000 + .25S2
S2 = 80,000 + .35S1
S1 = 100,000 +.10S2
Campaign Printing has two service departments, S1 and S2, and two production departments, P1 and P2....
Campaign Printing has two service departments, S1 and S2, and
two production departments, P1 and P2.
The data for May were as follows:
Services provided to:
Activity
Pre-allocation Costs
S1
S2
P1
P2
S1
$90,000
10%
40%
50%
S2
$60,000
20%
55%
25%
Pre-allocation Costs
P1
$360,000
P2
$520,000
Required:
Allocate service departments costs (S1 & S2) to the
production departments (P1 & P2) using reciprocal
method
Set up linear equations to solve for the total
costs incurred in S1...
Turner Inc. produces two products P1 and P2. The company has provided you with the following...
Turner Inc. produces two products P1 and P2. The
company has provided you with the following information. Assume
that the current sales volume of P1 and P2 reflects the long run
sales mix of the firm.
P1
P2
Selling price per unit
$30
$60
Variable cost per unit
$10
$30
# of units sold
9,000
6,000
Total fixed costs
$240,000
Select ALL statements that are TRUE. All numbers in
the answer choices are rounded off to 2 decimals. Breakeven volume...
Turner Inc. produces two products P1 and P2. The company has provided you with the following...
Turner Inc. produces two products P1 and P2. The
company has provided you with the following information. Assume
that the current sales volume of P1 and P2 reflects the long run
sales mix of the firm.
P1
P2
Selling price per unit
$30
$60
Variable cost per unit
$10
$30
# of units sold
9,000
6,000
Total fixed costs
$240,000
Select ALL statements that are TRUE. All numbers in
the answer choices are rounded off to 2 decimals. Breakeven volume...
Assume you have two processes, P1 and P2. P1 has a high priority, P2 has a...
Assume you have two processes, P1 and P2. P1 has a high
priority, P2 has a low priority. P1 and P2 have one shared
semaphore (i.e., they both carry out waits and posts on the same
semaphore). The processes can be interleaved in any arbitrary order
(e.g. P2 could be started before P1).
i.
Explain the problem with priority inversion
Briefly explain
whether the processes could deadlock when:
ii.
both processes run on a Linux system as...
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