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In: Accounting
Assigning Traceable Fixed Expenses Selected data for Miller Company, which operates three departments, follow: Department A...
Assigning Traceable Fixed Expenses
Selected data for Miller Company, which operates three departments,
follow:
| Department A | Department B | Department C | ||
|---|---|---|---|---|
| Inventory | $80,000 | $288,000 | $112,000 | |
| Equipment (average cost) | $720,000 | $432,000 | $288,000 | |
| Payroll | $405,000 | $360,000 | $135,000 | |
| Square feet of floor space | 18,000 | 9,000 | 3,000 |
During the year, the company’s fixed expenses included the following:
| Depreciation on equipment | $140,000 | |||
| Real estate taxes | 48,000 | |||
| Personal property taxes (on inventory and equipment) | 28,800 | |||
| Personnel department expenses | 225,000 |
Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments.
Do not round until your final answer. Round final answer to the nearest whole number.
| Department A | Department B | Department C | ||
|---|---|---|---|---|
| Depreciation | Answer | Answer | Answer | |
| Real estate taxes | Answer | Answer | Answer | |
| Personal property taxes | Answer | Answer | Answer | |
| Personnel dept. expenses | Answer | Answer | Answer |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Assigning Traceable Fixed Expenses Selected data for Miller Company, which operates three departments, follow: Department A...
Assigning Traceable Fixed Expenses Selected data for Miller
Company, which operates three departments, follow: Department A
Department B Department C Inventory $80,000 $288,000 $112,000
Equipment (average cost) $720,000 $432,000 $288,000 Payroll
$405,000 $360,000 $135,000 Square feet of floor space 18,000 9,000
3,000 During the year, the company’s fixed expenses included the
following: Depreciation on equipment $80,000 Real estate taxes
24,000 Personal property taxes (on inventory and equipment) 38,400
Personnel department expenses 40,000 Assume that the property tax
rate is the...
Assigning Traceable Fixed Expenses Selected data for Miller Company, which operates three departments, follow: Department A...
Assigning Traceable Fixed Expenses
Selected data for Miller Company, which operates three departments,
follow:
Department A
Department B
Department C
Inventory
$60,000
$216,000
$84,000
Equipment (average cost)
$540,000
$324,000
$216,000
Payroll
$810,000
$720,000
$270,000
Square feet of floor space
18,000
9,000
3,000
During the year, the company's fixed expenses included the
following:
Depreciation on equipment
$60,000
Real estate taxes
18,000
Personal property taxes (on inventory and equipment)
28,800
Personnel department expenses
40,000
Assume that the property tax rate is the...
Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow: Department A...
Assigning Traceable Fixed Expenses
Selected data for Colony Company, which operates three departments,
follow:
Department A
Department B
Department C
Inventory
$60,000
$216,000
$84,000
Equipment (average cost)
$540,000
$324,000
$216,000
Payroll
$607,500
$540,000
$202,500
Square feet of floor space
27,000
13,500
4,500
During the year, the company's fixed expenses included the
following:
Depreciation on equipment
$90,000
Real estate taxes
27,000
Personal property taxes (on inventory and equipment)
43,200
Personnel department expenses
45,000
Assume that the property tax rate is the...
Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow: Department A...
Assigning Traceable Fixed Expenses
Selected data for Colony Company, which operates three departments,
follow:
Department A
Department B
Department C
Inventory
$70,000
$252,000
$98,000
Equipment (average cost)
$630,000
$378,000
$252,000
Payroll
$607,500
$540,000
$202,500
Square feet of floor space
27,000
13,500
4,500
During the year, the company's fixed expenses included the
following:
Depreciation on equipment
$105,000
Real estate taxes
31,500
Personal property taxes (on inventory and equipment)
50,400
Personnel department expenses
52,500
Assume that the property tax rate is the...
Arbon Company has three service departments and two operating departments. Selected data concerning the five departments...
Arbon Company has three service departments and two operating
departments. Selected data concerning the five departments are
presented below:
Service Departments
Operating Departments
Administrative
Janitorial
Equipment
Maintenance
Prep
Finishing
Total
Costs
$
92,000
$
67,800
$
36,000
$
256,100
$
498,600
$
950,500
Number of employees
80
60
240
600
300
1,280
Square metres of space occupied
300
1,200
1,000
2,000
7,000
11,500
Machine-hours
26,000
54,000
80,000
The company allocates service
department costs by the step-down method in the following...
The Ferre Publishing Company has three service departments and two operating departments. Selected data from a...
The Ferre Publishing Company has three service departments and
two operating departments. Selected data from a recent period on
the five departments follow:
Service Departments
Operating Departments
Administration
Janitorial
Maintenance
Binding
Printing
Total
Costs
$72,000
$73,000
$44,000
$245,000
$545,000
$979,000
Number of employees
112
80
320
800
400
1,712
Square feet of space
occupied
3,000
12,000
10,000
20,000
70,000
115,000
Hours of press time
18,000
37,000
55,000
The company allocates service department costs by the step-down
method in the following...
The Ferre Publishing Company has three service departments and two operating departments. Selected data from a...
The Ferre Publishing Company has three service departments and
two operating departments. Selected data from a recent period on
the five departments follow:
Service Departments
Operating
Departments
Administrative
Janitorial
Maintenance
Binding
Printing
Total
Costs
$93,300
$66,200
$44,800
$248,300
$490,600
$943,200
Number of employees
60
90
260
630
320
1,360
Square feet of space occupied
3,100
11,800
8,800
10,400
68,900
103,000
Hours of press time
9,600
28,200
37,800
Required:
Assuming that the company uses the direct method rather than the
step-down...
THE Company operates two departments, Department L and Department Q. THE Company uses a FIFO process...
THE Company operates two departments, Department L and
Department Q. THE Company uses a FIFO process costing
system. Department L reported the following inventory
information for June:
% complete % complete
units DM conversion
work in process, June 1 14,000 24% 79%
work in process, June 30 18,000 65% 41%
The cost of beginning work in process and the costs added
during June in Department L were as follows:
DM Conversion
work in process, June 1 $ 36,804 $ 24,660...
THE Company operates two departments, Department L and Department Q. THE Company uses a FIFO process...
THE Company operates two departments, Department L and
Department Q. THE Company uses a FIFO process costing
system. Department L reported the following inventory
information for June:
% complete % complete
units DM conversion
work in process, June 1 18,000 28% 67%
work in process, June 30 34,000 71% 57%
The cost of beginning work in process and the costs added
during June in Department L were as follows:
DM Conversion
work in process, June 1 $ 35,240 $ 45,792...
THE Company operates two departments, Department L and Department Q. THE Company uses a FIFO process...
THE Company operates two departments, Department L and
Department Q. THE Company uses a FIFO process costing
system. Department L reported the following inventory
information for June:
% complete % complete
units DM conversion
work in process, June 1 18,000 28% 67%
work in process, June 30 34,000 71% 57%
The cost of beginning work in process and the costs added
during June in Department L were as follows:
DM Conversion
work in process, June 1 $ 35,240 $ 45,792...
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