Allocate maintenance costs based on maintenance hours

Assignment Help Cost Accounting

Reference no: EM13902725

Allocating overhead. Cameron Company has two production departments and a main- tenance department. In addition, the company keeps other costs for the general lant in a separate account. The estimated cost data for Year 1 follow:

Cost	Production Dept.1	Production Dept. 2	Maintenance	General_Plant
Direct Labor	$100,000	$ 60,000	---	---
Indirect Labor	56,000	28,000	$45,000	$40,000
Indirect Materials	18,000	14,000	1,800	16,000
Miscellaneous	6,000	10,000	3,200	10,000
	$180,000	$112,000	$50,000	$66,000
Maintenance	16,000 Hours	24,000 Hours	---	---

The general plant services the three departments in the following proportions: 50 percent (Department 1); 30 percent (Department 2); 20 percent (Maintenance). Allocate maintenance costs based on maintenance hours.

Allocate maintenance department and general plant costs to the production departments.

Use the step method, starting with general plant costs.

Reference no: EM13902725

Questions Cloud

Assume that success systems has total revenues : Adria Lopez, owner of Success Systems, realizes that she needs to begin accounting for bad debts expense.

What is lew profit if he does not offer a one- year warranty : What is Lew's profit if he does not offer a one- year warranty? If he does offer a one-year warranty and What is Harry's profit if Lew does not offer a one-year warranty? If he does offer a one-year warranty?

Assume that the cerritos band uses straight line : Assume that the Cerritos Band uses straight line depreciation but realizes at the start of the second year that due to concert bookings beyond expectations,

How many amendments have been added to the constitution? : how many amendments have been added to the Constitution?

Allocate maintenance costs based on maintenance hours : The general plant services the three departments in the following proportions: 50 percent (Department 1); 30 percent (Department 2); 20 percent (Maintenance). Allocate maintenance costs based on maintenance hours.

Which policy is more likely to create moral hazard problem : An insurance company is considering issuing three types of fire insurance policies complete insurance coverage- Which policy is more likely to create moral hazard problems?

What type of stone was the most common building material : What type of stone was the most common building material of royal pyramids?

Classify the following as either revenue or capital : 1. Classify the following as either revenue or capital expenditures.

How does truth in advertising promote competition : To promote competition and consumer welfare, the Federal Trade Commission requires firms to adver- tise truthfully. How does truth in advertising promote competition? Why would a market be less competitive if firms advertised deceptively?

User Account

All Pages