Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 11-18 (Algo) Service Department Charges [L011-4] Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The

image text in transcribed
image text in transcribed
Problem 11-18 (Algo) Service Department Charges [L011-4] Tasman Products has a Maintenance Department that services equipment in the company's Forming Department and Assembly Department. The cost of this servicing is charged to the operating departments based on machine-hours. Data for the Maintenance Department follow: *Budgeted at $22 per machine-hour. Data for the Forming and Assembly Departments follow: The amount of fixed costs in the Maintenance Department is detennined by peak-period requirements. Required: 1. How much Maintenance Department cost should be charged to the Forming Department and to the Assembly Department? 2. How much, if any, of the Maintenance Department's actual costs should be treated as a spending variance. and not charged to the Forming and Assembly departments? Problem 11-22 (Algo) Service Department Charges [LO11-4] Sharp Motor Company has a cafeteria that serves two operating divisions-an Auto Division and a Truck Division. The costs of operating the cafeterio are budgeted at $89,000 per month plus $0.90 per meal served. The fixed costs of the cafeteria are determined by peak-period requirements. The Auto Division is responsible for 74% of the peakperlod requirements, and the Truck Division is responsible for the other 26%. For June, the Auto Division estimoted it would need 82,000 meals, and the Truck Division estimated it would need 52,000 meals. However, due to unexpected layoffs of employees during the month, only 52,000 meals were served to the Auto Division. Another 52.000 meals were served to the Truck Division as planned. The cafeteria's actual fixed costs for June totaled $99,000 and its actual meal costs totaled $108,600. Required: 1. How much cafeteria cost should be charged to each division for June? 2. Assume the company follows the practice of allocating all cafeteria costs to the divisions based on the number of meals served. On this basis, how much cost would be allocoted to each division for June? Note: Round your intermediate calculations to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What are the advantages and disadvantages of VLANs?

Answered: 1 week ago

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is the relationship between humans and nature?

Answered: 1 week ago