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NikAS [45]
3 years ago
6

A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is consid

ered a separate cost center for IDC allocation. The remaining seven are grouped as one cost center, CC190. Operating hours are used as the allocation basis for all sta- tions. A total of $250,000 is allocated to the de- partment for next year. Use the data collected this year to determine the IDC rate for each center. Cost Center CC100 CC110 CC120 CC190 IDC Allocated $25,000 $50,000 $75,000 $100,000 Operating Hours 800 200 1200 1600
Business
1 answer:
julsineya [31]3 years ago
7 0

Answer:

CC100  has $31.25 per hour

CC11O has $250 per hour

CC120 has $62.5 per hour

CC190 has $62.5 per hour

Explanation:

The IDC rate for each department would be the department IDC allocated divided by operating hours as shown below:

CC100

IDC rate=$25,000/800=$31.25 per hour

CC110

IDC rate=$50,000/200=$250 per hour

CC120

IDC rate=$75,000/1200=$62.5 per hour

CC190

IDC rate=$100,000/1600=$62.5 per hour

Judging from the IDC rates of the departments,department CCC110 seems to have the highest IDC rate per hour,which implies that each hour is charged with $250 against the CC100 where each operating hours is just $31.25.

The higher the IDC rate in a department the higher the cost of the output of that department since the cost has to be recovered from output.

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Use a piece of scrap paper to prepare a cost of Goods Manufactured from the following numbers: Beginning Direct Raw Materials -$
Bezzdna [24]

Answer:

the total manufacturing cost is $215,000

Explanation:

The computation of the total manufacturing cost is shown below:

= Direct material used + direct labor cost + manufacturing overhead cost

= $69,000 + $92,000 - $8,000 + $25,000 + $37,000

= $215,000

Hence, the total manufacturing cost is $215,000

We simply applied the above formula

5 0
3 years ago
Gina and Chen are both managers at CPA4U, a large accounting firm. Each has a very different management style. Gina is very outg
Vladimir [108]

Answer:

Task-oriented leader

Explanation:

Task-oriented leaders focus on accomplishing tasks in order to achieve a certain goal. These leaders will set out the tasks to be done, plan and organize resources needed to accomplish the tasks and monitor progress towards accomplishment of the tasks. Task-oriented leaders do not tend to focus on the well being of their team. Chen demonstrates traits of a task oriented leader.

7 0
3 years ago
A company purchased a machine for $8,000, the estimated value of the equipment at the end of its 6-year useful life is $600. Com
vfiekz [6]

Explanation:

b) Double declining Balance

6 0
2 years ago
Read 2 more answers
Which of the following is NOT a differentiator between manufacturing and service operations? A. Transportation B. Customer conta
KengaRu [80]

Answer: D) Cost per unit

Explanation:

In terms of manufacturing field, where the goods are manufactured, service operation is the process which workers manage and control demand of customers after getting training from operation manager.

Cost per unit is not the factor that acts as differing agent between manufacturing  process and service operation because it is a part of the process which is handled by workers .

Other options are incorrect because transportation, contact of customer and resale are the factors that contrast the manufacturing service and service operations.Thus, the correct option is option(D)

5 0
3 years ago
On March 15, a fire destroyed Blossom Company's entire retail inventory. The inventory on hand as of January 1 totaled $5300000.
Svet_ta [14]

Answer:

The value of inventory destroyed=$4,082,000

Explanation:

<em>The value of the inventory destroyed is the difference between the the cost of the total goods available for sale and the cost of goods sold</em>

The value of inventory destroyed = cost of goods available for sale - value of inventory sold

Cost of goods sold = 3540,000 - (20%×  3540,000)= 2,832,000

The cost of goods available for dale = opening inventory + purchases + freight charges

$5300000 + $1432000 +  $182000 = 6,914,000

The value of inventory destroyed = 6,914,000 - 2,832,000 = 4082000

The value of inventory destroyed=$4,082,000

7 0
2 years ago
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