Question
In: Accounting
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 280 employees and occupies...
Ready Company has two
operating (production) departments: Assembly and Painting. Assembly
has 280 employees and occupies 66,000 square feet; Painting has 120
employees and occupies 44,000 square feet. Indirect factory
expenses for the current period are as follows:
| Administration | $ | 95,000 | |
| Maintenance | $ | 120,000 | |
Administration is allocated based on workers in each department;
maintenance is allocated based on square footage. The amount of
maintenance expenses that should be allocated to the Painting
Department for the current period is:
Multiple Choice
$72,000.
$66,500.
$138,500.
$48,000.
$144,000.
Solutions
Expert Solution
The correct answer is Option #4: $ 48,000, and the same is calculated below:
* Look under "Painting Department" Column for Answer value:
|
Assembly |
Painting |
Total |
|
|
Area occupied in square feet |
66,000 |
44,000 |
110,000 |
|
% of total square feet |
60% |
40% |
|
|
Allocation of Maintenance cost of $ 120,000 |
$ 72,000.00 |
$ 48,000.00 |
$ 120,000.00 |
ekkarill92 answered 2 years agoRelated Solutions
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 280 employees and occupies...
Ready Company has two operating (production) departments:
Assembly and Painting. Assembly has 280 employees and occupies
66,000 square feet; Painting has 120 employees and occupies 44,000
square feet. Indirect factory expenses for the current period are
as follows: Administration $ 95,000 Maintenance $ 120,000
Administration is allocated based on workers in each department;
maintenance is allocated based on square footage. The amount of
maintenance expenses that should be allocated to the Assembly
Department for the current period is: Multiple Choice...
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units...
The Carlberg Company has two manufacturing departments, assembly
and painting. The assembly department started 10,000 units during
November. The following production activity unit and cost
information refers to the assembly department’s November production
activities.
Assembly Department
Units
Percent of Direct
Materials Added
Percent of
Conversion
Beginning work in
process
2,000
60
%
40
%
Units transferred out
9,000
100
%
100
%
Ending work in process
3,000
80
%
30
%
Beginning work in process
inventory—Assembly dept
$
1,581 (includes...
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 11,400 units...
The Carlberg Company has two manufacturing departments, assembly
and painting. The assembly department started 11,400 units during
November. The following production activity unit and cost
information refers to the assembly department’s November production
activities.
Assembly Department
Units
Percent of Direct
Materials Added
Percent of
Conversion
Beginning work in process
2,000
75
%
25
%
Units transferred out
9,000
100
%
100
%
Ending work in process
4,400
85
%
35
%
Beginning work in process
inventory—Assembly dept
$
2,186 (includes...
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 11,400 units...
The Carlberg Company has two manufacturing departments, assembly
and painting. The assembly department started 11,400 units during
November. The following production activity unit and cost
information refers to the assembly department’s November production
activities.
Assembly Department
Units
Percent of Direct
Materials Added
Percent of
Conversion
Beginning work in
process
2,000
75
%
25
%
Units transferred out
9,000
100
%
100
%
Ending work in process
4,400
85
%
35
%
Beginning work in process
inventory—Assembly dept
$
2,186 (includes...
6. The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000...
6. The Carlberg Company has two manufacturing departments,
assembly and painting. The assembly department started 10,000 units
during November. The following production activity unit and cost
information refers to the assembly department’s November production
activities. Assembly Department Units Percent of Direct Materials
Added Percent of Conversion Added Beginning work in process 2,000
60 % 40 % Units transferred out 9,000 100 % 100 % Ending work in
process 3,000 80 % 30 % Beginning work in process
inventory—Assembly dept $...
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,300 units...
The Carlberg Company has two manufacturing departments, assembly
and painting. The assembly department started 10,300 units during
November. The following production activity unit and cost
information refers to the assembly department’s November production
activities. Assembly Department Units Percent of Direct Materials
Added Percent of Conversion Beginning work in process 3,000 60 % 40
% Units transferred out 10,000 100 % 100 % Ending work in process
3,300 80 % 30 % Beginning work in process inventory—Assembly dept $
2,696 (includes...
Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 12,100 units during...
Carlberg Company has two manufacturing departments, assembly and
painting. The assembly department started 12,100 units during
November. The following production activity unit and cost
information refers to the assembly department’s November production
activities.
Assembly Department
Units
Percent of Direct
Materials
Percent of
Conversion
Beginning work in process
3,500
60
%
40
%
Units transferred out
10,500
100
%
100
%
Ending work in process
5,100
80
%
30
%
Beginning work in process
inventory—Assembly dept
$
3,359 (consists of $1,902...
Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly...
Frederick Company has two service departments (Cafeteria
Services & Maintenance). Frederick has two production
departments (Assembly Department & Packaging Department.)
Frederick uses a step allocation method where Cafeteria Services is
allocated to all departments and Maintenance Services is allocated
to the production departments. All allocations are based on total
employees. Cafeteria Services has costs of $250,000 and Maintenance
has costs of $280,000 before any allocations. What amount of
Maintenance total cost is allocated to the Packaging Department?
(round to closest...
Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly...
Frederick Company has two service departments (Cafeteria
Services & Maintenance). Frederick has two production
departments (Assembly Department & Packaging Department.)
Frederick uses a step allocation method where Cafeteria Services is
allocated to all departments and Maintenance Services is allocated
to the production departments. All allocations are based on total
employees. Cafeteria Services has costs of $280,000 and
Maintenance has costs of $300,000 before
any allocations. What amount of Maintenance total cost is allocated
to the Packaging Department? (round to closest...
a. Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and...
a. Caro Manufacturing has two production departments, Machining
and Assembly, and two service departments, Maintenance and
Cafeteria. Direct costs for each department and the proportion of
service costs used by the various departments for the month of
August follow:
Proportion of Services Used by
Department
Direct Costs
Maintenance
Cafeteria
Machining
Assembly
Machining
$
98,000
Assembly
74,400
Maintenance
46,000
—
0.2
0.6
0.2
Cafeteria
37,000
0.6
—
0.1
0.3
Exercise 11-27 (Algo) Cost Allocation: Direct Method (LO
11-2)
Required:
Compute the...
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