Question
In: Accounting
1. Brownley Company has two service departments and two operating (production) departments. The Payroll Department services...
1. Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: Service Depts. Production Depts. Payroll Maintenance Cutting Assembly Direct costs $ 32,400 $ 37,500 $ 88,500 $ 117,400 No. of personnel 27 27 81 Sq. ft. of space 11,200 16,200 The total cost of operating the Maintenance Department for the current period is:
2. The standard materials cost to produce 1 unit of Product R is 5 pounds of material at a standard price of $60 per pound. In manufacturing 8,300 units, 39,900 pounds of material were used at a cost of $61 per pound. What is the direct materials quantity variance?
3.
The following is a partially completed lower section of a
departmental expense allocation spreadsheet for Brickland. It
reports the total amounts of direct and indirect expenses for the
four departments. Purchasing department expenses are allocated to
the operating departments on the basis of purchase orders.
Maintenance department expenses are allocated based on square
footage. Compute the amount of Purchasing department expense to be
allocated to Fabrication.
| Purchasing | Maintenance | Fabrication | Assembly | |||||||||||||
| Operating costs | $ | 44,000 | $ | 25,200 | $ | 108,000 | $ | 74,000 | ||||||||
| No. of purchase orders | 16 | 4 | ||||||||||||||
| Sq. ft. of space | 3,900 | 2,100 | ||||||||||||||
4.
Vextra Corporation is considering the purchase of new equipment
costing $44,000. The projected annual cash inflow is $12,800, to be
received at the end of each year. The machine has a useful life of
4 years and no salvage value. Vextra requires a 12% return on its
investments. The present value of an annuity of $1 for different
periods follows:
| Periods | 12% |
| 1 | 0.8929 |
| 2 | 1.6901 |
| 3 | 2.4018 |
| 4 | 3.0373 |
What is the net present value of the machine?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all...
Brownley Company has two service departments and two operating
(production) departments. The Payroll Department services all three
of the other departments in proportion to the number of employees
in each. The Maintenance Department costs are allocated to the two
operating departments in proportion to the floor space used by
each. Listed below are the operating data for the current
period:
Service Depts.
Production Depts.
Payroll
Maintenance
Milling
Assembly
Direct costs
$
24,200
$
35,000
$
95,500
$
143,400
No. of...
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Computer Operations Department is allocated to all departments and
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departments. All allocations are based on total
employees. Computer Operations has costs of $165,000 and
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