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
Irina-Kira [14]
3 years ago
5

Brandeis Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2. Direct costs for each dep

artment and the proportion of service costs used by the various departments for the month of July are as follows: Proportion of Services Used by: Department Direct costs S1 S2 P1 P2 S1 $62,000 0.70 0.10 0.20 S2 $102,000 0.20 0.30 0.50 P1 $162,000 P2 $142,000 Under the step-method of cost allocation, the amount of costs allocated from S2 to P2 would be: $90,875. $51,000. $63,750. $53,950.
Business
1 answer:
luda_lava [24]3 years ago
4 0

Answer:

a. $90,875

Explanation:

Provided information we have,

Individually allocated cost

S1  = $62,000    S2 = $102,000     P1 = $162,000         P2 = $142,000

Firstly under step method cost allocation will be from S1 to S2, P1, P2

Ratio = 0.7 : 0.1: 0.2

Thus allocated to S2 = $62,000 \times 0.7 = $43,400

P1 = $62,000 \times 0.1 = $6,200

P2 = $62,000 \times 0.2 = $12,400

Total cost of S2 = $102,000 + $43,400 = $145,400

Ratio between S1: P1: P2 = 0.2:0.3:0.5

Amount allocated to P1 =  $145,400 \times \frac{0.3}{0.8}

= $54,525

Amount allocated to P2 =  $145,400 \times \frac{0.5}{0.8}

= $90,875

Therefore, correct option is

a. $90,875

You might be interested in
The assets and liabilities of Thompson Computer Services at March 31, the end of the current year, and its revenue and expenses
Reika [66]

Answer: Please see explanation column for answers

Explanation: Given Revenue and expenses

Accounts payable $2,000     Miscellaneous expense $1,030, Accounts receivable 10,340        Office expense 1,240

  Cash 21,420,                       Wagesexpense 23,550                       Supplies 1,670  Land 47,000,  Building 157,630,  Dividends 16,570, Fees earned 73,450    

a. income statement for the current year ended March 31.

Fees earned = Revenue

Fees earned                                              73, 450

Expenses Incurred

Wages expense                     -$23,550      

Miscellaneous expense       -  $1,030

Office expense                        -$1,240

Total Expenses                                             25,820

Net income                                                   $47,630

Working : Net income = fees earned ( Revenue )- Total expenses =

$73,450 - $25,820 = $47,630

2.statement of retained earnings for the current year ended March 31.

Retained earning  at April 1ST               $60,000

Net income                                                  $47,630

Dividend                                                       $16,570

Retained earnings                                        $91,060

Working

Retained earning = Retained earning from april 1st + Net income -- Dividend

$60,000 + $47,630) - $16,570 = $91,060

3.

A balance sheet is a company's financial statement that shows its assets, liabilities and shareholders' equity to illustrate  the financial position of the company showing what the company has as its assets, n  is owing , and  the amount  liable to shareholders.at a particular  time. In a balance sheet,  Assets  must equal Liabilities and Shareholders’ Equity..

Balance sheet for Thompson's Computer Service.

Current assets

Cash                                                        $21,420

Account receivables                               $10,340  

Supplies                                                    $1,670

Total current assets $33,430

Property land and equipment

Land                                                           $47,000

Building                                                    $ 157,630

Total Property land and equipment       $204,630

Total assets                                               $238,060                                    

Liabilities and equity

Accounts payable                                              $2,000      

Stock holder's equity    

Common stock                                                 $145,000

Retained earnings                                             $91,060

Stock holder's equity                                      $236,000

Total Stock holder's equity and Liabilities      $ 238,060

we can see in the balance sheet that Stock holder's equity and Liabilities = Total Assets

4 0
3 years ago
Presented below is information related to Coronado Company at December 31, 2017, the end of its first year of operations. Sales
vovangra [49]

Answer:

The answer will be below

Explanation:

a. Income from operations=$322,990-$143,460-$49,300=$130,230

b. Net Income=$322,990-$143,460-$49,300+$27,900-$5,590-$12,730=$139,810

c. Comprehensive Income=$9,390

d. Retained Earnings=$139,810-$4,750=$135,060

8 0
2 years ago
Read 2 more answers
Independent contractors should purchase __________ liability insurance, which provides protection from liability as a result of
nevsk [136]

Answer:

professional liability insurance

Explanation:

Professional liability insurance protects businesses (an independent contractor is a one person business) against liability resulting from errors and omissions. It covers any harm caused to a customer as a result of professional service or advice. This type of policy generally covers negligence, copyright infringement, personal injury, etc.

Professional liability insurance is generally purchased by businesses that offer the following services:

  1. professional service s
  2. professional advice
  3. contractual services
5 0
3 years ago
In the cell phone mini case, mobile power's money-back guarantee and warrantee are a form of ________ pricing
Talja [164]
I believe its closure.
6 0
3 years ago
Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July $ 90,000 August 110,000 Se
Cerrena [4.2K]

Answer:

$112,500

Explanation:

                                                 July       August         September  October

Credit Sales(90000*75%)       67,500  

                   (110,000*75%)                       82,500

                   (120,000*75%)                                          90,000

Cash Sales (120,000*25%                                            30,000

<em>Total Cash expected to be collected in September will be;</em>

Credit Sales of August      $82,500

Cash  Sales of September $30,000

Total cash expected to be collected in September =$112,500

4 0
3 years ago
Read 2 more answers
Other questions:
  • A ____ is a single set of hardware, software, databases, telecommunications, people, and procedures that are configured to colle
    5·1 answer
  • You are buying and reselling items found at your local thrift shop. You found an antique pitcher for sale. If you need a 27% mar
    9·1 answer
  • The purpose of posting is to?
    9·2 answers
  • Discuss the merits and demerits of lepidopteran insects of crops production​
    10·1 answer
  • Sheri, a socialite, received bad publicity for her recent choice of evening wear. As a result, she decided to change designers.
    11·1 answer
  • Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries,
    9·1 answer
  • Malcolm has decided that he wants to open up his own law practice. The time has come to establish prices for his services. Due t
    8·1 answer
  • Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold
    13·1 answer
  • A large firm in the newspaper industry employs 250 people, of which 36 are upper-level managers. As a result of this employee-to
    7·1 answer
  • Carmel Corporation is considering the purchase of a machine costing $52,000 with a 4-year useful life and no salvage value. Carm
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!