Hi.<\/p>
<\/p>
Crystal Magic Company is developing departmental overhead rates based on direct-labor hours for its two production departments in the production of light-catcher art pieces, Etching and Assembly. The Etching Department employs 12 people and the Assembly Department employs 48 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $400,000, and the Assembly Department costs are budgeted at $640,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $96,000 and $500,000, respectively. The production departments' overhead rates cannot be determined until the service departments' costs are allocated. The following schedule reflects the use of the Maintenance Department's and Computing Department's output by the various departments. <\/p>
<\/p>
Using Department <\/strong><\/p> Service Department <\/strong><\/p> Maintenance <\/strong><\/p> Computing <\/strong><\/p> Etching <\/strong><\/p> Assembly <\/strong><\/p> Maintenance (maintenance hours) <\/p> 0 <\/p> 1,000 <\/p> 1,000 <\/p> 8,000 <\/p> Computing (minutes)<\/p> 240,000 <\/p> 0 <\/p> 840,000 <\/p> 120,000 <\/p> <\/p> Required:<\/u><\/strong><\/p> (Use M for Maintenance and C for Computing in your equations.)<\/p> 1. What is the equation for the total cost of the maintenance department when using the reciprocal services method? <\/p> 2. What is the equation for the total cost of the computing department when using the reciprocal services method?<\/p> 3. Solve each equation.<\/p> 4. Using the reciprocal-services method to allocate service department costs, calculate the overhead rates per direct-labor hour for the Etching Department and the Assembly Department.<\/p>",
"transcribed_text": "",
"related_book": {
"title": "Principles Of Finance",
"isbn": "979-8439388899",
"edition": "1st Edition",
"authors": "Julie Dahlquist, Rainford Knight",
"cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/6290aa2348f9a_11251.jpg",
"uri": "\/textbooks\/principles-of-finance-1st-edition-9798439388899",
"see_more_uri": ""
},
"free_related_book": {
"isbn": "B0852SBS4M",
"uri": "\/textbooks\/wimolek-extra-soft-toothbrush-for-sensitive-gums-and-teeth-b0852sbs4m",
"name": "Wimolek Extra Soft Toothbrush For Sensitive Gums And Teeth",
"edition": ""
},
"question_posted": "2024-06-29 02:14:57",
"see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12",
"step_by_step_answer": "The Answer is in the image, click to view ...",
"students_also_viewed": [
{
"url": "\/for-the-three-hydrogen-transitions-indicated-below-with-n-being",
"description": "For the three hydrogen transitions indicated below, with n being the initial state and n being the final state, is the transition an absorption or an emission? Which is higher, the initial state...",
"stars": 3
},
{
"url": "\/study-help\/theory-of-probability\/in-the-k-server-erlang-loss-model-suppose-that-1982985",
"description": "In the k server Erlang loss model, suppose that = 1 and E[S] = 4. Find L if Pk = .2.",
"stars": 3
},
{
"url": "\/korte-corporation-manufactures-a-single-product-the-standard-cost-per",
"description": "Korte Corporation manufactures a single product. The standard cost per unit of product is as follows. Direct materials2 pounds of plastic at $5 per pound ..... $10 Direct labor2 hours at $12 per hour...",
"stars": 3
},
{
"url": "\/study-help\/questions\/nishi-corporation-prepares-financial-statements-for-each-monthend-as-part-9860453",
"description": "Nishi Corporation prepares financial statements for each month-end. As part of its accounting process, estimated income taxes are accrued each month for 33% of the current months net income. The...",
"stars": 3
},
{
"url": "\/study-help\/questions\/which-country-has-characteristics-of-a-command-economy-responses-united-710349",
"description": "Which country has characteristics of a command economy? Responses United States United States Australia Australia North Korea North Korea",
"stars": 3
},
{
"url": "\/study-help\/questions\/1-examine-which-database-solution-your-organization-is-currently-1002236",
"description": "1 . Examine which database solution your organization is currently employing. Once this has been determined, interview ( where available ) the decision - maker for employing this application as a...",
"stars": 3
},
{
"url": "\/study-help\/questions\/tom-age-48-is-advised-by-his-family-physician-that-1002425",
"description": "Tom, age 48, is advised by his family physician that he needs back surgery to correct a problem from his last back surgery. Since Tom is in a wheel chair, he needs his wife, Jean, to accompany him on...",
"stars": 3
},
{
"url": "\/study-help\/questions\/the-company-named-canadian-shield-will-enter-the-market-of-1002487",
"description": "The company named Canadian Shield will enter the market of China, Japan, and Germany; Please make an international business environmental Socio-Cultural analysis for China, Japan, and Germany in the...",
"stars": 3
},
{
"url": "\/study-help\/questions\/andretti-company-has-a-single-product-called-a-dak-the-1002580",
"description": "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 $56 per unit. The company's unit costs at this level of...",
"stars": 3
},
{
"url": "\/study-help\/questions\/now-that-youve-explained-it-your-events-manager-at-hilton-1000489",
"description": "Now that you've explained it, your Events Manager at Hilton believes LEED is a good idea, but that becoming a Zero Carbon certified building is a better path to take. There are a number of strategies...",
"stars": 3
}
],
"next_back_navigation": {
"previous": "\/study-help\/questions\/which-metric-would-be-most-useful-for-measuring-the-success-4446761",
"next": "\/study-help\/questions\/gross-domestic-product-is-the-dollar-value-of-all-final-4446763"
},
"breadcrumbs": [
{
"name": "Study help",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers"
},
{
"name": "Business",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business"
},
{
"name": "Accounting",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting"
},
{
"name": "Hi. Crystal Magic Company is developing departmental overhead rates based on direct-labor",
"link": "https:\/\/www.solutioninn.com\/study-help\/questions\/hi-crystal-magic-company-is-developing-departmental-overhead-rates-based-4446762"
}
],
"skill_details": {
"skill_id": "9",
"skill_name": "Accounting",
"parent_id": "1"
}
}d": "1"
}
}