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Llana [10]
2 years ago
8

Kahle Company has two support departments: Purchasing and Payroll. The Purchasing Department expense is $500,000 to process 50,0

00 purchase requisitions, which are the cost driver for the department. The Payroll Department expense is $300,000 to process 25,000 payroll checks, which are the cost driver for the department. The Assembly Department has 50 employees and required the issuance of 1,300 payroll checks for the year. How much of the Payroll Department's cost is allocated to the Assembly Department
Business
1 answer:
allsm [11]2 years ago
3 0

Answer: $15600

Explanation:

To calculate the amount of the Payroll Department's cost that is allocated to the Assembly Department goes thus:

First we need to calculate the allocation rate which will be:

= $300,000/25,000

= $12.

Then, the departmental cost will be:

= Payroll checks × Allocation rate

= 1,300 × $12

= $15,600.

Therefore, the amount of the Payroll Department's cost that is allocated to the Assembly Department is $15600.

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The use of new technology in industry has benefited producers more so than consumers as, "Producers can transport goods around the world."

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1 year ago
Read the following descriptions of several different environments. Based on the information given, sort each environment into th
Varvara68 [4.7K]

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Have been mechanical weathering to prevail.

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3 years ago
On December 31, 2020, Lemmon Company issued 20,000 shares of its common stock with a fair value of $50 per share for all of the
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Answer:

$1,002,000

Explanation:

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However,the costs eligible to be recorded as investment upon acquisition are the fair value per share and the contingent obligation as shown below:

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2 years ago
Read 2 more answers
Martinez Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the
nikdorinn [45]

Answer:

The cost assigned to leashes for supervising is $180,000

Explanation:

Estimated Overhead Cost Drivers Overhead Rates

$ 260,000.00          130,000         $ 2.00 Per Order

$ 400,000.00          800,000 $ 0.50 per Part

$ 300,000.00          25,000         $ 12.00 Per Hour

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Cost assigned to leashes for supervising = 15,000 x 12 = $180,000

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