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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.

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Forest ranger in Arizona and New Mexico in the early 1900s who advocated preservation of nautre's integrity. He wrote "...to keep every cog and wheel is the first precaution of intelligent tinkering..." also known as the Land Ethic

B. Aldo Leopold

Explanation:

  • Forest ranger in Arizona and New Mexico in the early 1900s who advocated preservation of nautre's integrity. He wrote "...to keep every cog and wheel is the first precaution of intelligent tinkering..." also known as the Land Ethic
  • B. Aldo Leopold
  • Aldo Leopold is the only person who has said this line. It is also related to the facts given that Aldo was considered by many  as the of wildlife management.
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3 years ago
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In preparing a company's statement of cash flows for the most recent year, the following information is available:
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Answer:

c. $139,000 of net cash used.

Explanation:

Investing Activities shows results from Purchase or Sales of Assets or Investments.

Cash flow from Investing Activities

Purchase of equipment                                  (150,000)

Proceeds from the sale of equipment            131,000

Purchase of land                                             (120,000)

Net Cash used by Investing Activities           (139,000)

Net cash flows from investing activities for the year were: ($139,000)

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3 years ago
A fixed cost is a cost which
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Answer:

The answer is c. remains constant in total with changes in the level of activity.

Explanation:

In a cost structure of a firm, for decision-making purpose, it is usually divided into fixed cost and variable cost.

Variable cost is the type of costs which will increase following an additional production of an extra unit of product/service, that is, level of activity has been risen up given the production is taken place. A good example of these cost are material cost, labeling cost.

Fixed cost, as it name may tell, is costs that are unchanged regardless of a firm's activities level. That is, regardless of how many product/service is produced, these costs remain the same. A good example of these cost are depreciation cost, rental cost.

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3 years ago
Dj, inc., has net working capital of $2,170, current liabilities of $4,590, and inventory of $3,860.
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The above answer can be explained as under -

Given,

Current Liabilities =  $ 4,590

Net working capital = $ 2,170

So, the current assets will be calculated as under -

Net working capital = Current assets - Current liabilities

$ 2,170 = Current assets - $ 4,590

Current assets =  $ 2,170  + $ 4,590

Current assets = $ 6,760

The liquid or quick assets will be calculated as -

Current assets - Inventory = Quick assets

Quick assets = $ 6,760 - $ 3,860

Quick assets = $ 2,900.

Now,

1. Current ratio = \frac{Current assets }{Current Liabilities}

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2. Quick ratio = \frac{Quick assets }{Current Liabilities}

Quick ratio = \frac{$ 2,900 }{$ 4,590} = 0.63

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Most likely when the U.S. dollar appreciates, the MNC's interest owed on foreign funds borrowed will probably increase.

MNC refers to Multinational corporation .

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Therefore, the Option C is correct because the MNC's interest owed on foreign funds borrowed will probably increase when U.S. Dollars appreciates.

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