Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $20,500 Plant security 6,000 Plant nurse's salary and office expense 7,000 Factory depreciation (building) 20,000 Equipment depreciation 15,000 Machine maintenance 7,000 Plant cafeteria cost subsidy 5,000 $80,500 The following additional data have been collected for the three producing departments: Number of employees P1 P2 P3 20 30 10 Space occupied (square feet) 12,000 6,000 6,000 Direct labor hours 3,400 5,000 1,600 Machine hours 1,500 600 900 Number of nurse office visits 25 20 5 Required a. Determine the common basis for allocation for each of the four cost pools identified below. In addition, calculate the total cost in each of the four cost pools for January. Cost pool Allocation base Total Cost in pool 1. Plant manager's exp. AnswerDirect labor hoursMachine hoursNumber of employeesNumber of nurse office visitsSpace occupied (square feet) Answer Cafeteria subsidy Answer Answer 2. Plant security AnswerDirect labor hoursMachine hoursNumber of employeesNumber of nurse office visitsSpace occupied (square feet) Answer Bldg Answer depreciation 3. Nurse's expense 4. Machine maintenance Equipment depreciation Answer AnswerDirect labor hoursMachine hoursNumber of employeesNumber of nurse office visitsSpace occupied (square feet) Answer AnswerDirect labor hoursMachine hoursNumber of employeesNumber of nurse office visitsSpace occupied (square feet) Answer Answer Answer b. Determine the amounts allocated to the three producing departments using the allocation bases used in requirement (a). P1 P2 P3 Total Allocated costs Answer Answer Answer Answer c. How much indirect cost would be allocated to each producing department if Seattle Company were using a plantwide rate based on direct labor hours? Note: Round your final answers below to the nearest whole dollar. Note: Do not round the rates used in your calculations. P1 P2 P3 Total Allocated costs Answer Answer Answer Answer d. How much indirect cost would be allocated to each producing department if Seattle Company were using a plantwide rate based on machine hours? Note: Round your final answers below to the nearest whole dollar. Note: Do not round the rates used in your calculations. P1 P2 P3 Total Allocated costs Answer Answer Answer Answer Seattle Company has three producing departments (P1, P2, and P3) for which direct department costs are accumulated. In January, the following indirect costs of operation were incurred. Plant manager's salary and office expense $20,500 Plant security 6,000 Plant nurse's salary and office expense 7,000 Factory depreciation (building) 20,000 Equipment depreciation 15,000 Machine maintenance 7,000 Plant cafeteria cost subsidy 5,000 $80,500 The following additional data have been collected for the three producing departments: Number of employees P1 P2 P3 20 30 10 Space occupied (square feet) 12,000 6,000 6,000 Direct labor hours 3,400 5,000 1,600 Machine hours 1,500 600 900 Number of nurse office visits 25 20 5 Required a. Determine the common basis for allocation for each of the four cost pools identified below. In addition, calculate the total cost in each of the four cost pools for January. Cost pool Allocation base Total Cost in pool 1. Plant manager's exp. AnswerDirect labor hoursMachine hoursNumber of employeesNumber of nurse office visitsSpace occupied (square feet) Answer Cafeteria subsidy Answer Answer 2. Plant security AnswerDirect labor hoursMachine hoursNumber of employeesNumber of nurse office visitsSpace occupied (square feet) Answer Bldg Answer depreciation 3. Nurse's expense 4. Machine maintenance Equipment depreciation Answer AnswerDirect labor hoursMachine hoursNumber of employeesNumber of nurse office visitsSpace occupied (square feet) Answer AnswerDirect labor hoursMachine hoursNumber of employeesNumber of nurse office visitsSpace occupied (square feet) Answer Answer Answer b. Determine the amounts allocated to the three producing departments using the allocation bases used in requirement (a). P1 P2 P3 Total Allocated costs Answer Answer Answer Answer c. How much indirect cost would be allocated to each producing department if Seattle Company were using a plantwide rate based on direct labor hours? Note: Round your final answers below to the nearest whole dollar. Note: Do not round the rates used in your calculations. P1 P2 P3 Total Allocated costs Answer Answer Answer Answer d. How much indirect cost would be allocated to each producing department if Seattle Company were using a plantwide rate based on machine hours? Note: Round your final answers below to the nearest whole dollar. Note: Do not round the rates used in your calculations. P1 P2 P3 Total Allocated costs Answer Answer Answer Answer
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
`Maureen Spark is a big basketball star who has been offered contracts by New York Liberty and Miami Ocean Breeze. The payment (in millions of dollars) she receives under the 2 contracts are listed...
-
c) 10% d) 22.8% 7) If the one- and two-year U.S. Treasury notes have yields to maturity of 3% and 4%, respectively, then the expected future or forward interest rate between the end of year 1 and the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
9. Let x = (1.11... 111000...) 26, in which the fractional part has 26 1's followed by O's. For the Marc-32, determine x, x+, f(x), x-xx-x, xx, and lx-fl(x)/x.
-
Name the ten project management knowledge areas and briefly summarize each.
-
What nonconventional monetary policies shift the aggregate demand curve, and how do they work?
-
Consider exercise 8, except that in this case, the utility function of the man is now um = (x0.8/0.8) and that project 2 yields a gross return of $1,120 with 50 percent probability and zero...
-
Accounts Receivable Turnover for Coca-Cola and PepsiCo The following information was summarized from the 2008 annual report of The Coca-Cola Company: (In millions) Trade accounts receivable, less...
-
Which of the following statements is false? While marginal and average tax rates often differ, it is the average tax rate that is relevant for most financial decisions. The cash flow identity states...
-
Analyze the cost-volume-profit (CVP) relationship for Tesla, Inc. for the year 2023. Given the following data, calculate the breakeven point in units: Selling Price per Unit: $50,000 Variable Cost...
-
Between the end of Year 1 and the end of Year 2, Yihang's Yogurt had an increase in Advertising Payable of $493 and an increase in Prepaid Advertising of $506. If Yihang's Yogurt has a Year 2...
-
A statistical analysis of 1 , 0 0 0 long - distance telephone calls made by a company indicates that the length of these calls is normally distributed, with mean = 2 2 0 seconds and deviation = 4 0...
-
Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $58 per unit. The company's unit costs at this level of...
-
What role does Facebook and Twitter play in consumer word-of-mouth? What is buzz marketing and how is buzz marketing related to consumer word-of-mouth? What buzz marketing campaigns are you familiar...
-
Electron Inc. produces a variety of electronic products which it sells to retail stores throughout the country. The following data is available for the year for one of the products: Units started...
-
What is the definition of a taxable supply as it is shown in A New Tax System (Goods and Services Tax) Act 1999
-
Consider the sections of two circuits illustrated above. Select True or False for all statements.After connecting a and b to a battery, the voltage across R1 always equals the voltage across R2.Rcd...
-
It is impossible to have a standard management accounting system as it needs to match the needs of an operation. Discuss this statement from the perspective of hospitality, tourism or events...
-
What is the difference between cash and profits?
-
From the perspective of either a hotel manager, events manager, or a tour operator discuss the role strategic managerial accounting can have in aiding management decision making.
Study smarter with the SolutionInn App