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3 years ago

Which of the following statements is incorrect when allocating service department costs to operating departments?

Business

1 answer:

Whitepunk [10]3 years ago

6 0

Option C is incorrect when allocating service department costs to operating departments.

<u>Explanation: </u>

Typically, fixed costs are not assigned to working departments; however, they have to be absorbed by the service. This statement is incorrect in the service dept. Cost to Operating dept.

The reciprocal method assigns the cost of services to operating departments and other departments. The reciprocal costs are identified and the costs are assigned to each other and to services offered by each service department.

For example, if Service Department A requires certain services of Service Department B, the cost allocation system would not include these services. Since these services are not delegated to other departments, some auditors assume that the direct approach is not right.

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What is the total manufacturing overhead assigned to the current order for Men's Razors if the firm uses a volume-based plant wi

Brut [27]

Answer:

$7,200

Explanation:

The computation of the total manufacturing overhead assigned is shown below:

= ($168,640 + $127,840 + $554,400 + $1,078,000) ÷ $514,368

= 375% per direct-labor dollar.

Now

= $514,368 ÷ 8,037

= $64 per DL hour.

And,

= $64 × 30 direct labor hours

= $1920.

So,

Manufacturing overhead is

= 1920 × 375%

= $7,200

8 0

3 years ago

The independent cases are listed below that includes all items relevant to operating activities: Case A Case B Case C Sales reve

Mekhanik [1.2K]

Answer:

Cash flow :

For Case A = $27,450

Case B = $14,000

Case C = $25,000

Explanation:

As per the data given in the question,

Case A Case B Case C

Cash collected from customers $712,000 $555,000 $97,500

Cash payment to suppliers -$40,000 -$25,500 -$65,200

Cash payment for operating expense -$3,750 -$16,000 -$7,300

Net cash provided by operating activities $27,450 $14,000 $25,000

Where,

Cash received from customers = Net sales + dec. in account receivable - inc. in accounts receivable

Cash paid to suppliers = COG sold + inc. in inventory + dec. in accounts payable - dec. in inventory - inc. in accounts payable

Cash paid for operating expense = operating expense - Depreciation + inc. in prepaid expense + dec. in accrued expenses payable - inc. in accounts payable - inc. in accrued expenses payable

6 0

3 years ago

Allison, a long-time employee at aim corporation is helping william, a new employee; learn the culture of the organization. alli

Dmitrij [34]

Hello!

Q: Alison, a long-time employee at AIM Corporation is helping William, a new employee; learn the culture of the organization. Alison is using the _____________ process.

A: Alison, a long-time employee at AIM Corporation is helping William, a new employee; learn the culture of the organization. Alison is using the Socialization process.

8 0

3 years ago

14 the oligopoly model that predicts that oligopoly price tend to be very rigid is the ___

Lerok [7]

Kinked demand

I hope that helped

4 0

3 years ago

calls for establishing cost reduction targets for products or services that an organization is currently providing to customers.

dezoksy [38]

Answer:

A. Kaizen costing

Explanation:

Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

In Financial accounting, a direct cost can be defined as any expense which can easily be connected to a specific cost object such as a department, project or product. Some examples of direct costs are cost of raw materials, machineries or equipments.

On the other hand, any cost associated with the running, operations and maintenance of a company refers to indirect costs. Some examples of indirect costs are utility bill, office accessories, diesel etc.

Kaizen costing refer to calls for establishing cost reduction targets with respect to products or services that an organization is currently providing to customers. The word "Kaizen" has a Japanese origin and it simply means continuous improvement to a thing.

8 0

3 years ago