Compute cost allocation rates

Assignment Help Accounting Basics
Reference no: EM131819536

Question - Kind, Meek, and Clean, attorneys-at-law, specialize in three areas: criminal, civil, and family law. When specifications for a new computer system were established, the partners agreed to allocate usage based on each department's needs. Criminal law division needed 60% of the capacity, civil law 25%, and family law 15%. Variable costs for the computer department would be allocated on the number of computer minutes each division used. The computer department's budgeted fixed costs are $700,000, and the budgeted variable costs $150,000. The firm estimates that 400,000 minutes of computer time will be used year.

What amount of the computer department's fixed costs will be allocated to the civil and family law divisions, respectively? (Compute cost allocation rates to 3 significant digits.)

A. $37,500 and $22,500

B. $175,000 and $105,000

C. $233,333 and $233,333

D. $212,500 and $ 127,500

Reference no: EM131819536

Questions Cloud

How some individuals become terrorists and others do not : Explain within the context of specific criminological, sociological, and psychological theories and dynamics for why and how some individuals become terrorists
How much cash interest will Astra Mile receive each year : Accounting for bond investments Astra Mile & Co. owns vast amounts of Requirements corporate bonds. Suppose Astra Mile buys $1,000,000 of BloomCo bonds at face.
How would the bond investment be classified on league up : Accounting for bond investments League Up & Co. owns vast amounts of corporate bonds. Suppose League Up buys $700,000 of CoteCorp bonds at face value.
How do you view police violence and secrecy : Westley viewed police violence and secrecy as a matter of morality. How do you view police violence and secrecy?
Compute cost allocation rates : What amount of the computer department's fixed costs will be allocated to the civil and family law divisions, respectively
Human computer interaction : This question is for a COMPUTER SCIENCE class (CIS 375 Human Computer Interaction). Please give a short answer. for each question.
Disadvantage to hedging using forward contract : Compute any advantage/disadvantage to hedging using the forward contract.
Explain the national and local rates : Explain the national and local rates. Have they gone up or down? How do they compare? Do you see trends? To what do you attribute the differences?
What types of tasks can you or have you used with a database : In your daily life, have you ever created or used a database? What types of tasks can you or have you used with a database?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the sales forecast modeling

Toys Unlimited, Ltd., must forecast sales for a popular adult com- puter game to avoid stockouts or excessive inventory charges during the upcoming Christmas season. In percentage terms, the company estimates that game sales fall at double the rat..

  Danson iron works inc manufactures angular contact ball

danson iron works inc. manufactures angular contact ball bearings for pumps that operate in harsh environments. if the

  What is the amount of underapplied or overapplied overhead

What is the amount of underapplied or overapplied overhead for the year? If this amount were closed out entirely to Cost of Goods Sold

  Cost of equity capital-allegheny valley power company

The Allegheny Valley Power Company common stock has a beta of 0.80. If the current risk-free rate is 6.5%(Krf)and the expected return on the common stock as a whole is 16%(Km)

  Reporting financial performance

The introduction of FRS 3, Reporting Financial Performance, has resulted in a considerably expanded profit and loss account with related disclosures and a new primary statement. The standard is intended to be based on the 'all-inclusive' concept o..

  Prepare an income statement and balance sheet

Prepare an income statement and balance sheet for 2016 on the forms provided. Some lines are already filled in which means you don't need to worry about those lines.  Please be sure to fill in the subtotals and totals on the financial statements

  Determine the amount of the pbo

During 2009, pension benefits paid were $40,000. The discount rate for the plan for this year was 10%. Service cost for 2009 was $80,000. Plan assets (fair value) increased during the year by $45,000. Required: Determine the amount of the PBO at D..

  Design a performance report for the chicago omni hotel

the chicago omni hotel is a 750-room luxury hotel offering guests the finest facilities in downtown chicago. the hotel

  Keller company estimates that variable costs will be 60 of

keller company estimates that variable costs will be 60 of sales and fixed costs will total 1920000. the selling price

  Conflict between need for personal privacy-confidentiality

Discuss the conflict between the need for personal privacy and confidentiality in banking transactions and the need for the government to curtail money laundering activities.

  Should the ceo and cfo sign the certification

Who are the stakeholders in this situation? Should the CEO and CFO sign the certification? Explain why or why not. What are the CEO's and CFO's alternatives?

  Discuss unadjusted trial balance

Hitachi, Ltd., reports total revenues of ¥10,000,369 million for its fiscal year ending March 31, 2009, and its March 31, 2009, unadjusted trial balance.

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