Question 2 Combined Manufacturers Ltd (CML) has 3 support departments: Equipment Maintenance, Quality Control and Material...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 2 Combined Manufacturers Ltd (CML) has 3 support departments: Equipment Maintenance, Quality Control and Material Handling Department. The company has two departments that are directly engaged in production: The Bending Department and the Welding Department. The usage of the three-support department output is as follows: Service Provider Departments and percentage of their services used by the user departments Equipment Maintenance Department Bending department and Welding department use 30% and 70% of the services, respectively Quality Control Department Equipment Maintenance Department 5% Material Handling Department 20% Bending Department 25% Welding Department 50% Material Handling Department Quality Control Department 5% Bending Department 35% Welding Department 60% The budgeted costs in the respective departments were as follows: Support departments: Equipment maintenance Quality control Material handling Production departments: Bending Welding Total overhead costs Required $ 200 000 120 000 300 000 $ 620 000 15 marks $ 600 000 100 000 $ 700 000 $ 1320 000 Use the Step-down method to allocate the budgeted costs of the Equipment Maintenance, Quality Control and Material Handling to the Bending and Welding Departments. CML allocates the costs of the Quality Control Department first. (Note: Round off your answers to the nearest whole number) 2 Question 2 Combined Manufacturers Ltd (CML) has 3 support departments: Equipment Maintenance, Quality Control and Material Handling Department. The company has two departments that are directly engaged in production: The Bending Department and the Welding Department. The usage of the three-support department output is as follows: Service Provider Departments and percentage of their services used by the user departments Equipment Maintenance Department Bending department and Welding department use 30% and 70% of the services, respectively Quality Control Department Equipment Maintenance Department 5% Material Handling Department 20% Bending Department 25% Welding Department 50% Material Handling Department Quality Control Department 5% Bending Department 35% Welding Department 60% The budgeted costs in the respective departments were as follows: Support departments: Equipment maintenance Quality control Material handling Production departments: Bending Welding Total overhead costs Required $ 200 000 120 000 300 000 $ 620 000 15 marks $ 600 000 100 000 $ 700 000 $ 1320 000 Use the Step-down method to allocate the budgeted costs of the Equipment Maintenance, Quality Control and Material Handling to the Bending and Welding Departments. CML allocates the costs of the Quality Control Department first. (Note: Round off your answers to the nearest whole number) 2
Expert Answer:
Answer rating: 100% (QA)
Step method of allocation Departmental costs before ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
Answer each of the following independent questions concerning supplies and the adjustment for supplies. (a) The balance in the supplies account, before adjustment at the end of the year, is $2,100....
-
If you deposit $15,000 today in a Certificate of Deposit and earn 1% annual interest, how much will you have in 8 years? Using excel work funtion (PV)
-
Answer each of the following independent questions. 1. Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $20,000...
-
Population increase in northern Virginia requires new road constructions and repairs annually from 2022. More public schools will also be needed by 2035. The state of Virginia is considering an...
-
The U.S. Census Bureau publishes data on the population of the United States by race and Hispanic origin in American Community Survey. From that document, we constructed the following bar chart. Note...
-
duction to adjustment calculus - please solve with clear procedure, thank you.
-
6. Describe the role each of the following plays in contract law: the common law, the UCC, and the Restatement (Second) of Contracts.
-
The comparative balance sheets of Menachem Corporation at the beginning and end of the year 2012 appear below. Net income of $34,000 was reported, and dividends of $23,000 were paid in 2012. New...
-
Please answer the above question with detailed steps and explanations. Thank you. #4. Suppose that the current YTM is 10% and assume semi-annual compounding. We have a liability to pay $10,000 in 3...
-
Tuckered Outfitters plans to market a custom brand of packaged trail mix. The ingredients for the trail mix will include Raisins, Grain, Chocolate Chips, Peanuts, and Almonds costing, respectively,...
-
How to calculate an equal-weighted standard deviation of a portfolio with 5 stocks. How is it different to a standard deviation of a portfolio with 5 stocks weighting 20%?
-
A human computer system results in a network community? Discuss.
-
Create a comparative analysis with your own proper citation essay of the Real GDP per capita behavior for the US, Finland, Ethiopia, and Ghana. Make sure to include the following: 1. present basic...
-
Find all the antiderivatives of the following function. h(z)=-5z 6 The antiderivatives of h(z) = -5z are H(z) =
-
Explain the term 'working capital' and provide critical assessment of working capital management of the NEXT company for the last two consecutive years (2023, 2022). What are the major elements of...
-
1) What are the overall benefits of arts integration? 2) Name and Explain the benefits of each of the four fine arts integration areas. 3) Name at least three concepts/methods/strategies for...
-
plshelp asap i will like Problem: Module 3 Textbook Problem 1 Leorning Objective: 3-1 Show how notes payable and related interest expense offect financial statements Abardeen Corporation borrowed \(...
-
On October 1, 2021, Adoll Company acquired 2,600 shares of its $1 par value stock for $38 per share and held these shares in treasury. On March 1, 2023, Adoll resold all the treasury shares for $34...
-
Indicate (by abbreviation) the type of hedge each activity described below would represent. Hedge . Type FV ... Fair value hedge CF ... Cash flow hedge FC ... Foreign currency hedge N ... Would not...
-
For each of the following depreciable assets, determine the missing amount (?). Abbreviations for depreciation methods are SL for straight line, SYD for sum-of-the-years' digits, and DDB for...
-
Differentiate between the accumulated benefit obligation and the projected benefit obligation.
-
Question: Daniel Cowin was a minority shareholder of Bresler & Reiner, Inc., a public company that developed real estate in Washington, D.C. He alleged numerous instances of corporate mismanagement,...
-
Question: As a pitcher for the Cleveland Indians farm team, Randy Newsom had dreams of glory but a paycheck that was a nightmare-$8,000 for the season. Newsom came up with a clever solution: He set...
-
Question: Paul was an investment banker who sometimes bragged about deals he was working on. One night he told a bartender, Ryanne, about an upcoming deal. Ryanne bought stock in the company Paul had...
Study smarter with the SolutionInn App