Management accounting
The Regal Drva's Wardrobe, a dresimakint boutique in Toeonto, agreed to make Rachers wedding dreas for 55 , co0. The drew was sopposed so be ready for Rachel's wedAing en Aught cqualified staff On July 1 thi. Janet, the ownet of Regat Diva Wardrobe called Rachel to tell her that dhe detes wouk not be teady cen nee unlew Rachel agred so pay an extra $2,000 se itat Janet could hire somecne at rwice the regula hourly wage to help her finsab the lace emhroidery Rachel was very upvet, and feelang that she had no cher choice, agreed Oa Augut 1. when Rachel pieked up the dres, the told Janet that she did not think that it was far that she should have wo pay mere than they had agreed upon and refased te par the addeticeal 52,000 Janet was furious and saat. "But Rachel agreed to pay the additional 52,009" Can Janct take legal achion apainat Rachel for the addiuonal 52,000 (yes er no)? Why or why nat? Defite ainy le gal concept or term atsat you war Hint chapter E Cost alfocation is often the centemplece of contid that is resolved in court cases. The itigation usually inivelves the dispute over hiow costs are alocated to a product or ptoduct line that is of miterest to the plaieuth. This is particulatly an issue when a company proctices some products or services for a perice competilive matket wive other products of services are prodaced for a governmental unit on-a costplis or teinbursement bass Nursing Care incamovated or NG, opesates both a smalt nutsing hoase and s reticement hame. There is a single kitchen abed to provide mieas to both the nursing home and ietrement homie, meaning labor costs and umlities costs of the witchen are shared by the two homes. There is alio a centrahised cleaning department that provides the cleaning servicen for both homes as wel as the kitchen. The nursing home serves anly indigent patents who ore on Medicald. The state Department of Health and Family Seivices (DHFS) reimburses NCl at Medicold epproved cost reimbursement rotes. The Medicald reimbursement rates are based on cost intormation supplied by NCl. The resevant cost ind allocation daca for the most recent year appear in the following table. Required: 1 Marispoment of NCi curtently allocates the kitchen and cleaning department costs based on the number of tesidents in each home Deterame ibe amoant of vervice department costs assigned to esch of the homes using this allocation base 2. DHFS auditors bebeve the step method of allocition should be used by first assigning cleaneng costs based on square feet and then Witchen costs based on number of residents. Determine the amount of service depirment costs assigned bo each of the homes using. this ollocation method. (Oe not round percentages in your colculations.) The Regal Drva's Wardrobe, a dresimakint boutique in Toeonto, agreed to make Rachers wedding dreas for 55 , co0. The drew was sopposed so be ready for Rachel's wedAing en Aught cqualified staff On July 1 thi. Janet, the ownet of Regat Diva Wardrobe called Rachel to tell her that dhe detes wouk not be teady cen nee unlew Rachel agred so pay an extra $2,000 se itat Janet could hire somecne at rwice the regula hourly wage to help her finsab the lace emhroidery Rachel was very upvet, and feelang that she had no cher choice, agreed Oa Augut 1. when Rachel pieked up the dres, the told Janet that she did not think that it was far that she should have wo pay mere than they had agreed upon and refased te par the addeticeal 52,000 Janet was furious and saat. "But Rachel agreed to pay the additional 52,009" Can Janct take legal achion apainat Rachel for the addiuonal 52,000 (yes er no)? Why or why nat? Defite ainy le gal concept or term atsat you war Hint chapter E Cost alfocation is often the centemplece of contid that is resolved in court cases. The itigation usually inivelves the dispute over hiow costs are alocated to a product or ptoduct line that is of miterest to the plaieuth. This is particulatly an issue when a company proctices some products or services for a perice competilive matket wive other products of services are prodaced for a governmental unit on-a costplis or teinbursement bass Nursing Care incamovated or NG, opesates both a smalt nutsing hoase and s reticement hame. There is a single kitchen abed to provide mieas to both the nursing home and ietrement homie, meaning labor costs and umlities costs of the witchen are shared by the two homes. There is alio a centrahised cleaning department that provides the cleaning servicen for both homes as wel as the kitchen. The nursing home serves anly indigent patents who ore on Medicald. The state Department of Health and Family Seivices (DHFS) reimburses NCl at Medicold epproved cost reimbursement rotes. The Medicald reimbursement rates are based on cost intormation supplied by NCl. The resevant cost ind allocation daca for the most recent year appear in the following table. Required: 1 Marispoment of NCi curtently allocates the kitchen and cleaning department costs based on the number of tesidents in each home Deterame ibe amoant of vervice department costs assigned to esch of the homes using this allocation base 2. DHFS auditors bebeve the step method of allocition should be used by first assigning cleaneng costs based on square feet and then Witchen costs based on number of residents. Determine the amount of service depirment costs assigned bo each of the homes using. this ollocation method. (Oe not round percentages in your colculations.)
