How much of the actual service department costs

Assignment Help Accounting Basics
Reference no: EM132944582

Problem - A company has a service department which allocates its costs to two operating departments D and L. Variable costs of the service department are based on the number of cases produced and fixed costs are determined based on peak period demand requirements. For the most recent period:

Service Department

Budget

Actual

Total Variable Cost

$400,000

$416,626

Total Fixed Cost

$720,000

$732,960

 

Operating Departments

Cases Produced

% Peak Period Capacity Required

Budget

Actual

Operating Department D

23,000

23,020

35%

Operating Department L

57,000

56,960

65%

Required - How much of the actual service department costs would not be charged to the operating departments for this period?

Reference no: EM132944582

Questions Cloud

Why team working might be important to corie motivation : Read the following case study and then answer the questions that follow. Applying the motivational theories Corie Jones joined Index Computers after working for
Find what is the degree of operating leverage : What is the degree of operating leverage? You estimate that your sheep farm will generate 2.5 million of profits on sales of 5.4 million
What is the expected net present value of building the plant : What is the expected net present value of building the plant? An auto plant that costs $100 million to build can produce a new line of cars.
What is the effect on the npv of the project : The working capital investments will be recovered at the end of the life of the project, what is the effect on the NPV of the project?
How much of the actual service department costs : How much of the actual service department costs would not be charged to the operating departments for this period
What will be the cash flow in each of years one to eight : If Daily's marginal tax rate is 38%, what will be the cash flow in each of years one to 8 (the cash flow will be the same each year)?
What is operating cash flow each year : What is operating cash flow each year? what is the net present value of this investment? should the company accept or reject this project?
How structure the process of product development : Explain how you will structure the process of product development?
Define corporate governance : Define Corporate governance. Briefly explain what assurances an effective internal control system may provide for a company's management.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Krispy amp co manufactures a single product that goes

krispy amp co manufactures a single product that goes through two processes mixing and cooking. the following data are

  The video points out that ceo hsieh sits

The video points out that CEO Hsieh sits in a cubicle just like everyone else instead of having a large office like many other CEOs. This demonstrates which of the following ways that employees at Zappos learn the? culture?

  Compute basis earning per shares

There were no changes during 2013 in the number of common shares, preferred shares, or convertible bonds outstanding. Compute basis earning per shares for 2013

  Prepare the necessary correcting entry for the partnership

Prepare the necessary correcting entry(s) for the partnership. The profit and loss sharing agreement for the Quade, Reid, and Scott partnership

  Find what is amount of underapplied or overapplied overhead

How much indirect labor cost would be included in Manufacturing Overhead Incurred? Find what is the amount of underapplied or overapplied overhead?

  What impact will a percent decrease in sales

What impact will a 5 percent decrease in sales have on Beachcomber's (i) EBIT and (ii) net income? Beachcomber has no preferred stock

  Calculate units completed and transferred out

Calculate units completed and transferred out during March.

  Who are the three nationwide credit bureaus

How frequently can you get a free copy of your credit report from each of the three credit bureaus? Who are the three nationwide credit bureaus

  Why might managers find a flexible-budget analysis

Write an analytical summary of your learning outcomes from chapters 9 and 10. In addition to your analytical summary, address the following.

  The buildings are estimated to have a 40-year useful life

land 3000000 buildings 26500000 less accumulated depreciation-buildings 12100000 14400000 equipment 40000000 less

  Explain why net income and retained earnings

Explain why net income and retained earnings are the same for King. Normally would these amounts be the same? Why or why not?

  What is the accounting standards for income

What is the accounting standards for Income Producing Properties? The changes in fair value for each reporting period will recorded in consolidated statements

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