Spacer company has two service departments and two

Assignment Help Accounting Basics

Reference no: EM13586143

Spacer Company has two service departments and two operating departments. Budgeted costs and budgeted activity in the various departments for last year are shown below:

Custodial Cutting Assembly
Services Cafeteria Department Department
Departmental costs $50,400 $28,000 $120,000 $200,000
Square feet occupied 500 1,000 4,000 5,000
Number of employees 10 15 75 100
Machine-hours 10,000 15,000

Service department costs are allocated to operating departments with the costs of Custodial Services allocated on the basis of square feet of space occupied and the costs of the Cafeteria on the basis of number of employees. The departmental costs for the cutting and assembly departments are overhead costs. Predetermined overhead rates in the Cutting and Assembly departments are based on machine-hours.

1. Assume that the company uses the direct method of allocation. The predetermined overhead rate in the Assembly Department would be closest to:

A) $16.27

B) $15.00

C) $15.87

D) $16.00

2. Assume that the company uses the step method of allocation with Custodial Services allocated first. The amount of Custodial Services cost allocated to the Assembly Department would be:

A) $0

B) $28,000

C) $24,000

D) $25,200

Reference no: EM13586143

Questions Cloud

How might you respond to this risk in terms of staffing : your client general television inc. manufactures televisions and during the current year acquired micro engineering

If light bulbs have lives that are normally distributed : q1 if light bulbs have lives that are normally distributed with a mean of 2500 hours and a standard deviation of 500

Perform an internet search using the term break-even : perform an internet search using the term break-even analysis. select and read a case study or article from the results

A extraction plant uses an applied emf of 30v and a current : a extraction plant uses an applied emf of 3.0v and a current of 310000 a. one tonne of aluminium is extracted after 16

Spacer company has two service departments and two : spacer company has two service departments and two operating departments. budgeted costs and budgeted activity in the

A rock climber of mass 55 kg is hanging suspended from a : a rock climber of mass 55 kg is hanging suspended from a rope tied to another climber ofmass 65 kg on a horizontal

Production records show that 34950 units were in beginning : rivera company has several processing departments. costs charged to the assembly department for november 2014 totaled

Finished goods inventory is 185000 if overhead applied to : 1.finished goods inventory is 185000. if overhead applied to these goods is 74000 and the overhead rate is 110 of

At an altitude of 300 m the field has magnitude 600 nc at : it is found experimentally that the electric field in a certain region of earths atmosphere is directed vertically

User Account

All Pages