Question
National company has two support departments A&B and two operating departments X&Y. for the first quarter 2021, Budgeted overhead costs before any interdepartmental costs allocations
National company has two support departments A&B and two operating departments X&Y. for the first quarter 2021, Budgeted overhead costs before any interdepartmental costs allocations were: A $800,000, B $1,500,000, X $5,000,000 and Y $11,000,000. Support work supplied by A to B 20%, to X 50% and to Y 30%. Support work supplied by B to A 25%, to X 35% and to Y 40%. Using direct method, the total cost support departments after allocation is:
a. $17,500,000.
b. $0.
c. $16,000,000.
d. $2,300,000.
The cost-allocation method that allocates support department costs only to production departments is the:
a. step-down method
b. sequential method
c. direct method
d. reciprocal method
Coca Cola manufacturers a standard juice. During February, the firm's Assembly Department started production of 75,000 boxes. During the month, the firm completed 85,000 boxes. And transferred them to the Finishing Department. The firm ended the month with 5,000 boxes in ending inventory 40% complete. All direct materials costs are added at the beginning of the production cycle. Conversion costs are incurred uniformly over the production cycle. Weighted-average costing is used by Coca Cola. the units to account for is:
a. 89,000 boxes
b. 85,000 boxes
c. 90,000 boxes
d. 95,000 boxes
Please please, I don't have enough time, help me
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started