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The document attached has four questions on it. Please take a look and let me know how much it will cost to answer each. Question
The document attached has four questions on it. Please take a look and let me know how much it will cost to answer each.
Question 1 Hanson Corp has two service departments: Maintenance and Personnel. Maintenance department costs of $300,000 are allocated on the basis of budgeted maintenancehours. Personnel department costs of $100,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance hours and numbers of employees are as follows: Maintenance department has 50 employees. Personnel department has 800 budgeted maintenance hours. Production department A has 200 employees and 1200 budgeted maintenance hours. Production department B has 600 employees and 600 budgeted maintenance hours. Required (4 part answer): 1. Using the direct method, what amount of Maintenance department costs will be allocated to Department B? 2. Using the direct method, what amount of Personnel department costs will be allocated to Department B? 3. Using the step-down method, what amount of Maintenance department costs will be allocated to Department B assuming the maintenance department is allocated first (of the two service departments) 4. Using the direct method, what amount of Personnel department costs will be allocated to Department A? Question 2 The Burt Corporation manufactures widgets, gizmos, and turnbols from a joint process. June production is 5,000 widgets, 8,750 gizmos, and 10,000 turnbols. Respective per unit selling prices at splitof are $75, $50, and $25. Joint costs up to the splitof point are $187,500 and they are allocated based on the sales value at splitof. Required (2 part answer): 1. 2. What amount of joint costs will be allocated to the widgets? What amount of joint costs will be allocated to the tunrbols? Question 3 Connor Lighting manufactures small flashlights and is considering raising the price by 75 cents per unit for the coming year. With a 75 cent price increase, demand is expected to fall by 7,000 units. Current sales are 75,000 units at a selling price of $8.50/unit with a cost per unit of $4.80. Projected sales are 68,000 units at a selling price of $9.25/unit with a cost per unit of $4.80 Required (2 part answer): 1. 2. Calculate the impact to operating profit if the price increase is implemented. Would you recommend the 75 cent price increase and why? Question 4 Animer, Inc. provides the following information: Corporate advertising costs = $800,000 Division A = $4,500,000 total revenues Division B = $7,500,000 total revenues Division C = $2,000,000 total costs Required (2 part question) - Assume that customers with higher revenues benefitted more from corporate advertising than customers with lower revenues. 1. 2. What is the allocated corporate advertising costs for Division A? What is the allocated corporate advertising costs for Division BStep by Step Solution
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