1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
umka2103 [35]
3 years ago
6

Support department cost allocation—direct method Becker Tabletops has two support departments (Janitorial and Cafeteria) and two

production departments (Cutting and Assembly). Relevant details for these departments are as follows: Support Department Cost Driver Janitorial Department Square footage to be serviced Cafeteria Department Number of employees Janitorial Department Cafeteria Department Cutting Department Assembly Department Department costs $320,000 $170,000 $1,490,000 $670,000 Square feet 40 5,000 600 2,400 Number of employees 8 3 36 4 Allocate the support department costs to the production departments using the direct method.
Business
1 answer:
OLEGan [10]3 years ago
8 0

Answer:

Using the direct method, total cost allocated to Cutting Department is $211,333 while total cost allocated to Assembly Department is $278,667.

Explanation:

Step 1: Calculation of the allocation of costs from Janitorial Department to Cutting and Assembly Departments

For Janitorial Department, square meter is used as the relevant basis of allocation and the following formula will be used:

Cost allocated to a Department = (Department’s Square meter ÷ Total Square meter) × Total cost of the Department being allocated

Therefore,

Janitorial Department Cost allocated to Cutting Department = (26 ÷ 30) × $170,000 = $64,000

Janitorial Department Cost allocated to Assembly Department = (4 ÷ 30) × $170,000 = $256,000

Step 2: Calculation of the allocation of costs from Cafeteria Department to Cutting and Assembly Departments

For Cafeteria Department, number of employee is used as the relevant basis of allocation and the following formula will be used:

Cost allocated to a Department = (Department’s number of employees ÷ Total Square meter) × Total cost of the Department being allocated

Therefore,

Cafeteria Department Cost allocated to Cutting Department = (600 ÷ 3,000) × $320,000 = $147,333  

Cafeteria Department Cost allocated to Assembly Department = (2,400 ÷ 3,000) × $320,000 = $22,667

Step 3: Calculation of Total Cost Allocated to each department

Total cost allocated to Cutting Department = $64,000 + $147,333 = $211,333

Total cost allocated to Assembly Department = $256,000 + $22,667 = $278,667

Conclusion

Therefore, using the direct method, total cost allocated to Cutting Department is $211,333 while total cost allocated to Assembly Department is $278,667.

You might be interested in
"The price of coffee increases by 10%, and as a result, Alex purchases fewer donuts. This suggests that to Alex, coffee and donu
Travka [436]

Answer:

Complementary goods

Explanation:

Complementary goods are goods that are demanded for together or consumed together. If the demand for one of the complementary goods increases, the demand for the other good increases and vice versa.

If the price of coffee increases by 10%, the demand for coffee and doughnut would fall according to the law of demand.

I hope my answer helps you.

8 0
3 years ago
Bledsoe Company received $15,000 cash from the issue of stock on January 1, 2013. During 2013 Bledsoe earned $8,500 of revenue o
kati45 [8]

Answer:

Total assets is increased by $18,100

Explanation:

The computation is shown below:

= Cash received from the issue of stock + revenue earned on account - cash paid for operating expenses

= $15,000 + $8,500 - $5,400

= $18,400

This positive amount shows that there is an increase in the total assets for $18,100

The cash collected from the account receivable is not relevant. Hence ignored it

5 0
2 years ago
In capitalism, what does competition do for consumers?
borishaifa [10]

It keeps prices fair for consumers who are trying to buy there products.


- R3KTFORGOOD ☕

7 0
3 years ago
In the Challenge​ Solution, would it make a difference to the analysis whether the​ lump-sum costs such as registration fees are
Assoli18 [71]

Answer:

The answer is "nothing changes because the fees would still be fixed costs."

Explanation:

When annual expenses throughout the cash payment are recovered, a long-term delivery curve of both the company will change.

When the lump sum costs are still only obtained once, the long-term supply curve shall be changed.

It is because, regardless of how it is paid, this tv license has little effect mostly on low cost but only a fixed cost. Its amount of output relies on how well the cost of the profit changes. Provided these are fixed costs, their performance doesn't matter.

5 0
2 years ago
What is Advertising , according to the American Marketing Association​
fredd [130]

Answer+Explanation:

Advertising is the placement of announcements and messages in time or space by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/or persuade members of a particular target market or audience regarding their products, services, organizations or ideas.

4 0
3 years ago
Other questions:
  • How many international airports are in cote d'ivoire?
    8·1 answer
  • A computer equipment was acquired at the beginning of the year at a cost of $56,000 with an estimated residual value of $5,000,
    15·2 answers
  • McDonald's culture, with an emphasis on cleanliness, consistency, service, and the training that reinforces the value of these c
    5·1 answer
  • On June​ 30, Coral, Inc. finished Job 750 with total job costs of $ 4 comma 500​, and transferred the costs to Finished Goods In
    14·1 answer
  • The General Fund reported a beginning balance of inventory of materials and supplies of $122,000. The ending balance was $150,00
    8·1 answer
  • First Community Bank spent a considerable amount of money updating its lobby with plush sofas, a large-screen television, and a
    15·2 answers
  • Ruiz Engineering Contractors incurred service salaries and wages of $37,700 ($27,300 direct and $10,400 indirect) on an engineer
    12·1 answer
  • Sandhill Corporation loaned $590000 to another corporation on December 1, 2020 and received a 3-month, 6% interest-bearing note
    6·1 answer
  • Learning Task No. 1: Complete the following table.
    7·1 answer
  • Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines), L is labor (the number of
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!