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melamori03 [73]
3 years ago
6

The Mega Construction Company recently switched to activity-based costing (ABC) from the department allocation method. The depar

tment method allocated overhead costs at a rate of $60 per machine hour. The cost accountant for the Finishing Department has gathered the following data: Activity Cost Drivers Amount Material handling Tons of material handled $ 80 Machine setups Number of production runs 4,000 Utilities Machine hours 15 Quality control Number of inspections 600 During April, Mega purchased and used $115,000 of direct materials at $20 per ton. There were 8 production runs using a total of 11,000 machine hours in April. The manager of the Finishing Department needed 12 inspections. Actual overhead costs totaled $890,000 for the month. How much overhead costs were applied to the Work-in-Process Inventory during April using activity-based costing
Business
1 answer:
Anuta_ua [19.1K]3 years ago
5 0

Answer:

$664,200

Explanation:

Computation of the given data are as follow:-

Material Overhead = (Machine purchase price ÷ Direct material per ton) × Cost of material handling

= (115,000 ÷ 20) × 80

= $460,000  

Set up of Machine = Production overhead =No. of production run × cost of production run

= 8 × $4,000 = $32,000

Quality Control = 12 × $600 = $7,200

Utilities Cost = 11,000 × $15 = $165,000

Work In Process Inventory During April = Material Overhead + Production Overhead + Quality Control +  Utilities Cost

= $460,000 + $32,000 + $7,200 + $165,000

=$664,200

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3 years ago
Romain Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has
xenn [34]

Answer:

Romain Surgical Hospital

The total Surgery Department cost after service department allocations is closest to:

$ 565,970

Explanation:

a) Data and Calculations:

                                 Service Department                  Operating Department

              Information Technology    Administration   Surgery     Recovery

Departmental costs $ 36,294              $ 36,282    $ 522,320   $ 720,360

Computer workstations 43                       20                 74               64

Employees                      39                       25                94               47

Information Technology costs allocated based on the Computer workstations $36,294/138 = $263 per workstation

Administration costs allocated based on the number of employees:

$36,282/141 = $257.32

Direct Allocation of Service Departments' Costs:

                                 Service Department                  Operating Department

              Information Technology    Administration   Surgery     Recovery

Departmental costs $ 36,294              $ 36,282    $ 522,320   $ 720,360

Information Techn.     (36,294)                 0                   19,462          16,832

Administration                 0                     (36,282)          24,188          12,094

Total costs                       0                        0            $ 565,970    $ 749,286

8 0
3 years ago
Could the central utility plant be built in a way that would allow for expansion as the additional buildings are built?
Orlov [11]

Yes, central utility plant can be built in a way that would allow for expansion as the additional buildings are built.

HVAC:

In this field, the phrase "HVAC" is frequently used, although many homeowners are unsure of what it entails. It is an acronym for "heating, ventilation, and air conditioning."

The principles of thermodynamics, fluid mechanics, and heat transfer are the foundation of the HVAC (Heat in Ventilation and Air Conditioning) system. The technology behind comfortable environments in homes and cars called HVAC.

According to the inquiry, the current HVAC design uses a central forced air heating and cooling system in the office and electric baseboard heaters around the perimeter. The lab space is designed with a three-pipe hydronic plumbing system that generates heating and cooling utilizing gas-fired boilers and electric chillers.

This HVAC design has several benefits like it will provide:

The psychological state of thermal comfort, which conveys happiness with the thermal environment and is evaluated subjectively.

One of the key objectives of HVAC is to maintain a standard of thermal comfort for people inside of buildings or other enclosed spaces.

Acceptable indoor air quality refers to the condition of the air inside and around buildings and other structures.

Make sure that poor indoor air quality doesn't hinder learning or productivity at work by taking care of the air.

District energy systems

1 Heating energy: In united states specially, Water heating is more efficient than others for heating buildings. And Forced systems have several benefits such as

We get better cooling effects from it.

it provide energy saving of up to 15-20 %

2 Energy used for air conditioning: Air conditioners and heaters transport heat rather than changing its form. Thermal efficiencies do not adequately explain the performance of these devices, even though it enhances efficiency because of this heat.

Yes, it is possible to construct the central utility plant in a way that would enable extension as more buildings are constructed. because it will improve the interchange of thermal energy, or heat, between physical systems and the quality of the air. Building reconstruction is more advantageous when done in accordance with HVAC Design.

Learn more about HVAC  here brainly.com/question/20264838

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6 0
1 year ago
Two main reasons a company will market its products are to _____. (Select all that apply)
Leni [432]

Answer:

3. consumers know what is available

Explanation:

3 0
3 years ago
Jilk Inc.'s contribution margin ratio is 61% and its fixed monthly expenses are $47,500. Assuming that the fixed monthly expense
JulsSmile [24]

Answer:

$36,070

Explanation:

Given that,

Contribution margin ratio = 61%

Fixed monthly expenses = $47,500

sales = $137,000

Contribution margin:

= Sales × Contribution margin ratio

= $137,000 × 61%

= $83,570

Net income = Contribution margin - Fixed monthly expenses

                    = $83,570 - $47,500

                    = $36,070

Therefore, the best estimate of the company's net operating income in a month is $36,070.

8 0
3 years ago
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