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?

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

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

Expert Solution

ekkarill92 answered 8 months ago

Next > < Previous

Related 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...

Macy Manufacturing Corporation has two service departments, Custodial Services and Maintenance, and three production (operating) departments,...

Macy Manufacturing Corporation has two service departments, Custodial Services and Maintenance, and three production (operating) departments, Cutting, Milling, and Assembly. The company allocates the cost of Custodial Services on the basis of square footage and Maintenance on the basis of labor-hours. No distinction is made between variable and fixed costs. Budgeted operating data for the year just completed follow: Service Departments Operating Departments Custodial Maintenance Cutting Milling Assembly Budgeted costs before allocation $24,000 $12,000 $120,000 $75,000 $135,000 Square feet 2,000...

Matt limited has two production, departments, machine department and assembly department. There are two service departments,...

Matt limited has two production, departments, machine department and assembly department. There are two service departments, stores and maintenance. The budgeted overheads of each department along with overheads that have yet to be apportioned are listed below, along with details which can be used for appointment. Total Machine Dept Assembly Dept Stores Maintenance K’000 K’000 K’000 K’000 K’000 Indirect labour 1 125 000 400 000 650 000 40 000 35 000 Indirect material 310 000 160 000 120 000 10...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $160,000 and Maintenance Services has costs of $165,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $185,000 and Maintenance Services has costs of $185,000 before any allocations. What amount of Maintenance Services total cost is allocated to the...

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...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $195,000 and Maintenance Services has costs of $155,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $165,000 and Maintenance Services has costs of $155,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $135,000 and Maintenance Services has costs of $115,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments...

Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $145,000 and Maintenance Services has costs of $130,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are: Computer...

Subjects