Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a)Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation

a)Frederick Company has two service departments (Cafeteria Services & Maintenance). Frederick has two production departments (Assembly Department & Packaging Department.) Frederick uses a step allocation method where Cafeteria Services is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Cafeteria Services has costs of $180,000 and Maintenance has costs of $160,000 before any allocations. What amount of Maintenance total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are:

Cafeteria Services 4

Maintenance 5

Assembly Department 10

Packaging Department 7

b)

Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:

Direct material of 4.00 yards at $5.75 per yard

Direct labor of 2.50 hours at $18.00 per hour

Overhead applied per sleeping bag at $18.00

In the month of April, the company actually produced 4,900 sleeping bags using 26,000 yards of material at a cost of $5.70 per yard. The labor used was 11,500 hours at an average rate of $16.50 per hour. The actual overhead spending was $96,200.

Determine the materials price variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Investigation And Forensic Accounting

Authors: George A Manning

3rd Edition

0367864347, 9780367864347

More Books

Students also viewed these Accounting questions