Allocate service department costs to operating departments

Assignment Help Accounting Basics
Reference no: EM131807433

Problem - Wisneski Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow:

 

Support Departments

Operating Departments

Total Budget

 

General Management

Physical Pant

Sales

After Sales

Overhead Budget before allocations

29,880

57,240

286,590

249,650

623,360

Employee time

5,000

2,000

20,000

14,000

41,000

Space occupied

1,000

2,000

37,000

1,000

41,000

General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied.

Requirements - Allocate the service department costs to the operating departments using the step-down method. Show your work.

Reference no: EM131807433

Questions Cloud

Compute for the total manufacturing costs : Manufacturing costs and other accounts of Toy Manufacturing Company appeared in its Dec
What is the present worth of the bonus : If Cathy is still with the project when it is completed at the end of year 5, she will receive a bonus of $100,000. Her discount rate is 12%. What is the presen
What is the present worth of the bonus : Her discount rate is 12%. What is the present worth of the bonus? (Answer: $56,740)
Calculate the dividends per share on each class of stock : Calculate the dividends per share on each class of stock for the four years.
Allocate service department costs to operating departments : Requirements - Allocate the service department costs to the operating departments using the step-down method. Show your work
Probabilities for two states of nature and two indicators : Show how you would design a spreadsheet to calculate revised probabilities for two states of nature and two indicators.
What is the pw for continuing : Net returns from the product will be $20K per year for 10 years. If the firm's i is 10%, what is the PW for continuing? Should the firm continue?
Review the instructions for the investment planning proposal : Review the Instructions for the Investment Planning Proposal. Use the APA Sample Template to write and submit your proposal.
Time value of money : If the apartment house can be sold for $100,000 at the end of 10 years, how much can you afford to pay for it if the time value of money is 10%?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Arthurs auto repair shop is considering the purchase of a

arthurs auto repair shop is considering the purchase of a new computer system for diagnosing engine problems. the

  Mike company was authorized to issue 50000 shares of

mike company was authorized to issue 50000 shares of common stock. the company had issued 28000 shares of stock when it

  Record the transactions in agropurs journal

Assume Agropur's balance sheet includes the following assets under Property, Plant, and Equipment: Land, Buildings. Record the transactions in Agropur's journal

  Taylor company adopted the dollar value lifo method

1.On January 1, 2013, the Taylor Company adopted the dollar value LIFO method.

  Confidence interval narrower

a) Find a 95% confidence interval for the mean difference in ages of houses in the two neighborhoods using the df given in Exercise 7. b) Why is the confidence interval narrower than the one you found in Exercise 9? c) Is 0 within the confidence in..

  Overhead is applied on the basis of standard machine hours

dinkel manufacturing corporation accumulates the following data relative to jobs started and finished during the month

  What are the tax consequences of not making an insurance

1. what are the tax consequences of not making an insurance claim when insured business use property is subject to a

  In 2010 the moncrief company purchased from jim lester the

in 2010 the moncrief company purchased from jim lester the right to be the sole distributor in the western states of a

  How much should red rock report as bad debt expense

How much should Red Rock report as bad debt expense on its Year 3 income? statements

  Compute the olds net tax payable for year

Alfred was divorced from Sarah Old in March 2013. Under the divorce agreement

  Calculate break even in pounds if the sales price increases

Calculate break even in pounds if the sales price increases by 10% and fixed costs increase

  The cotton company is a retail store dealing in expensive

1. identify and discuss the controls for the sales and for the cash receipts. 2. identify and discuss some possible

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd