Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Try It 15-1: Aberdeen Corporation has one support department, Engineering Services, and two production departments, Machining and Assembly. The following data relate to the

image text in transcribed

Try It 15-1: Aberdeen Corporation has one support department, Engineering Services, and two production departments, Machining and Assembly. The following data relate to the 2017 budget for the Engineering Services Department: Practical capacity Fixed costs of the Engineering Services Department in the 6,000 labor-hour to 8,000 labor-hour relevant range Budgeted usage (quantity) of engineering services labor-hours required to support the productions departments: Machining department Assembly department Total Budgeted variable cost per engineering services labor-hour in the 6,000 labor-hour to 8,000 labor-hour relevant range Actual usage (quantity) of Engineering Services labor-hours required to support the production departments: Machining department Assembly department Total 8,000 hours $280,000 2,500 hours 4,500 hours 7,000 hours $25 per hour used 2,000 hours 4,000 hours 6,000 hours 1.Using the single-rate method, calculate the cost to be allocated to the Machining and Assembly Departments if the allocation rate is based on budgeted costs and budgeted quantity of Engineering Services and allocated based on actual Engineering Services hours used in each department. 2.Using the dual-rate method, calculate the cost to be allocated to the Machining and Assembly Departments if (a) variable costs are allocated based on the budgeted variable cost per hour for actual hours used in each department and (b) fixed costs are allocated based on budgeted fixed costs per hour and the budgeted number of hours for each department. 3.Using the single-rate method, calculate the cost to be allocated to the Machining and Assembly Departments if the allocation rate is based on budgeted costs and practical capacity of the Engineering Services Department and allocated based on actual Engineering Services hours used in each department. 4.Using the dual-rate method, calculate the cost to be allocated to the Machining and Assembly Departments if (a) variable costs are allocated based on the budgeted variable cost per hour for actual hours used in each department and (b) the fixed-cost allocation rate is based on budgeted costs and practical capacity of Engineering Services Department and fixed costs are allocated based on budgeted Engineering Service hours used in each department.

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

Financial Accounting an introduction to concepts, methods and uses

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

13th Edition

978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003

More Books

Students also viewed these Accounting questions

Question

What is the difference between generalization and specialization?

Answered: 1 week ago