Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Allwood Corporation has one support department, Engineering Services, and two production departments, Machining and Assembly. The following data relate to the 2017 budget for the

image text in transcribed
image text in transcribed
image text in transcribed
Allwood Corporation has one support department, Engineering Services, and two production departments, Machining and Assembly. The following data relate to the 2017 budget for the Engineering Services Department: EEl (Click the icon to view the budget data for 2017.) Read the requirements. Requirement 1. Using the single-rate method, calculate the cost to be allocated to the Machining and Assembly Departments if the allocation rate is based on budgeted costs and budgeted quantity of Engineering Services and allocated based on actual Engineering Services hours used in each department. Begin by determining the rate per hour used to allocate engineering services department costs to the machining and assembly departments. Budgeted total rate per hour is $ Now, we can allocate the engineering-services costs to the machining and assembly departments, under the single-rate method. Assembly department Requirement 2. Using the dual-rate method, calculate the cost to be allocated to the Machining and Assembly Departments if (a) variable costs are allocated based on the budgeted variable cost per hour for actual hours used in each department and (b) fixed costs are allocated based on budgeted fixed costs per hour and the budgeted number of hours for each department. Before completing the allocation, calculate the budgeted fixed cost rate per hour Budgeted fixed cost rate per hour is $ Now we can complete the allocation. Begin with the Machining Department. Fixed costs Variable costs Total costs Now, allocate the costs to the Assembly Department. Fixed costs Variable costs Total costs Requirement 3. Using the single-rate method, calculate the cost to be allocated to the Machining and Assembly Departments if the allocation rate is based on budgeted costs and practical capacity of Engineering Services Department and allocated based on actual Engineering Services hours used in each department. Begin by determining the budgeted total-cost rate per hour. (Round your answer to the nearest cent.) Budgeted total-cost rate per hour is $ Now, we can allocate the engineering-services costs to the machining and assembly departments, under the single-rate method, based on actual hours used in each Machining department: Assembly department: Reauirement 4. Usina the dual-rate method, calculate the cost to be allocated to the Machining and Assemblv Departments if fa) variable costs are allocated based

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_2

Step: 3

blur-text-image_3

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

Cost Accounting A Decision Emphasis

Authors: Germain B. Boer, William L. Ferrara, Debra C. Jeter

4th Edition

0873939123, 978-0873939126

More Books

Students also viewed these Accounting questions

Question

5. Does quality management always lead to improvement?

Answered: 1 week ago

Question

summarize the history of work psychology;

Answered: 1 week ago

Question

Describe the importance of employer branding.

Answered: 1 week ago

Question

Explain corporate sustainability.

Answered: 1 week ago