Suppose a company has three profit centers with the following information: Division D Division E Division...
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Suppose a company has three profit centers with the following information: Division D Division E Division F sq. feet occupied 22,160 sq. feet occupied total sales 408,000 total sales 28,080 468,000 sq. feet occupied 29,760 total sales 324,000 headcount 21 headcount 24 headcount 15 Corporate costs are allocated to the divisions as follows: Headquarters Rent Expense is allocated based on square feet occupied Corporate Marketing Expense is allocated based on sales Human Resources Expense is allocated based on headcount Allocate the following costs according to the conventions shown above. Round percentages to the nearest tenth of a percent (for example, 33.5%) and round answers to the nearest whole dollar. Headquarters Rent Expense 350,000 Corporate Marketing Expense 420,000 Human Resources Expense 290,000 Finally, figure total amount allocated to each division. Unit Standards: DM 20.0 ft @ $ 15.00 foot 18.0 hours $ 18.00 hour VOH 18.0 hours @ $ 6.00 hour FOH 18.0 hours @ $ 12.00 hour Flexible Budget: 69 300.00 324.00 108.00 216.00 948.00 @ 14,000 (70%) DM 280,000.0 ft $ 15.00 foot 4,200,000.00 DL 252,000.0 hours $ 18.00 hour 4,536,000.00 VOH 252,000.0 hours @ $ 6.00 hour = 1,512,000.00 FOH 252,000.0 hours @ $ 12.00 hour = 3,024,000.00 (a 16,000 (80%) DM 320,000.0 ft @ $ 15.00 foot = 4,800,000.00 DL 288,000.0 hours @ $ 18.00 hour = 5,184,000.00 VOH 288,000.0 hours @ $ 6.00 hour = 1,728,000.00 FOH 3,024,000.00 @ 18,000 (90%) DM 360,000.0 ft @ $ 15.00 foot = 5,400,000.00 DL 324,000.0 hours @ $ 18.00 hour = 5,832,000.00 VOH 324,000.0 hours @ $ 6.00 hour = 1,944,000.00 FOH 3,024,000.00 Actuals: @ 16,000 DM 336,000.0 ft @ $ 14.00 foot 4,704,000.00 DL 304,000.0 hours $ 19.00 hour 5,776,000.00 VOH 2,128,000.00 FOH 3,040,000.00 i) Planned operation was at 70% of the productive capacity of 20,000 units. ii) Prepare DM, DL, VOH and FOH variance analyses. Suppose a company has three profit centers with the following information: Division D Division E Division F sq. feet occupied 22,160 sq. feet occupied total sales 408,000 total sales 28,080 468,000 sq. feet occupied 29,760 total sales 324,000 headcount 21 headcount 24 headcount 15 Corporate costs are allocated to the divisions as follows: Headquarters Rent Expense is allocated based on square feet occupied Corporate Marketing Expense is allocated based on sales Human Resources Expense is allocated based on headcount Allocate the following costs according to the conventions shown above. Round percentages to the nearest tenth of a percent (for example, 33.5%) and round answers to the nearest whole dollar. Headquarters Rent Expense 350,000 Corporate Marketing Expense 420,000 Human Resources Expense 290,000 Finally, figure total amount allocated to each division. Unit Standards: DM 20.0 ft @ $ 15.00 foot 18.0 hours $ 18.00 hour VOH 18.0 hours @ $ 6.00 hour FOH 18.0 hours @ $ 12.00 hour Flexible Budget: 69 300.00 324.00 108.00 216.00 948.00 @ 14,000 (70%) DM 280,000.0 ft $ 15.00 foot 4,200,000.00 DL 252,000.0 hours $ 18.00 hour 4,536,000.00 VOH 252,000.0 hours @ $ 6.00 hour = 1,512,000.00 FOH 252,000.0 hours @ $ 12.00 hour = 3,024,000.00 (a 16,000 (80%) DM 320,000.0 ft @ $ 15.00 foot = 4,800,000.00 DL 288,000.0 hours @ $ 18.00 hour = 5,184,000.00 VOH 288,000.0 hours @ $ 6.00 hour = 1,728,000.00 FOH 3,024,000.00 @ 18,000 (90%) DM 360,000.0 ft @ $ 15.00 foot = 5,400,000.00 DL 324,000.0 hours @ $ 18.00 hour = 5,832,000.00 VOH 324,000.0 hours @ $ 6.00 hour = 1,944,000.00 FOH 3,024,000.00 Actuals: @ 16,000 DM 336,000.0 ft @ $ 14.00 foot 4,704,000.00 DL 304,000.0 hours $ 19.00 hour 5,776,000.00 VOH 2,128,000.00 FOH 3,040,000.00 i) Planned operation was at 70% of the productive capacity of 20,000 units. ii) Prepare DM, DL, VOH and FOH variance analyses.
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Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
Posted Date:
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