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please help me to find the answers and clear explanation for the three questions attached Required: a. Using the direct allocation method, calculate the allocated
please help me to find the answers and clear explanation for the three questions attached
Required: a. Using the direct allocation method, calculate the allocated cost per service unit provided by S1, S2, and S3. b. Using the direct allocation method, calculate the costs of S1, S2, and S3 that are allocated to O1 and O2. c. Using the step-down allocation method, calculate the allocated cost per service unit pro-vided by S1, S2, and S3. d. Using the step-down allocation method, calculate the costs of S1, S2, and S3 that are allocated to O1 and O2. The order of the departments in the step-down is S1 first, S2 second, and S3 last. e. Using the step-down allocation method, calculate the allocated cost per service unit pro-vided by S1, S2, and S3. The order of the departments in the step-down is S3 first, S2 sec-ond, and S1 last. f. Using the step-down allocation method, calculate the costs of S1, S2, and S3 that are allocated to O1 and O2. The order of the departments in the step-down is S3 first, S2 second, and S1 last. g. Discuss the advantages and disadvantages for Sydney Mira of using the direct alloca-tion method, the step-down method (S1 first, S2 second, and S3 last), and the step-down method (S3 first, S2 second, and S1 last). P 10-21: Ceramtics Ceramtics manufactures a high-speed ceramic switch used in the telecommunications industry. Data about Ceramtics's operations for 2017 and 2018 are presented below: Ceramtics Summary of Operations 2017 and 2018 2017 2018 Sales price/switch $4,400 $4,400 Number of switches sold 2,000 2,000 Number of switches produced 2,400 1,600 Fixed manufacturing costs $2.4 million $2.4 million Variable manufacturing costs per switch $2,800 $2,800 Ceramtics had no beginning inventories in 2017. To simplify the computations, assume Ceramtics has only manufacturing expenses (i.e., there are no selling, administration, distribution, or interest expenses and no taxes). Ceramtics uses the FIFO method for inventory costing. Assume that budgeted volume and actual volume are the same, budgeted fixed and actual fixed overhead are the same, and budgeted variable and actual variable overhead per switch are the same. In other words, at the end of the year there is no over- or underabsorbed overhead. Required: a. Prepare income statements for 2017 and 2018 using absorption costing. b. Prepare income statements for 2017 and 2018 using variable costing. c. Reconcile any differences in income for 2017 and 2018 between absorption costing and variable costing from parts ( a ) and ( b ). That is, explain why absorption and variable costing give different net income numbers in 2017 and 2018 Required: a. Calculate Durnstein Schnapp's plantwide overhead rate for last year. b. One batch of plum schnapps used 20 direct labor hours. How much manufacturing over-head was absorbed by this one batch? c. How much over/underabsorbed overhead did Durnstein Schnapps have last year? d. Recommend/discuss how Durnstein Schnapps is likely to account for the over/underab-sorbed overhead you calculated in part ( c )Step by Step Solution
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