The direct method of cost allocation

Assignment Help Accounting Basics
Reference no: EM13532474

CCara Mia Hospital has two service departments and three operating departments. Selected information on the five departments for last year is as follows:

Kilowatt Number of
Hours Employees
Service Departments:
Power Generation ..... ---- 90
Laundry .................. 190,000 ----
Operating Departments:
Emergency Room ..... 475,000 378
Maternity ................. 209,000 189
Intensive Care .......... 76,000 63

Annual operating costs in Power Generation is $250,000. In Laundry they are $60,000. Cara Mia allocates Power Generation cost first on the basis of kilowatt hours. Cara Mia then allocates Laundry cost on the basis of the number of employees.

Use the information above to answer the following questions. Show your computations on the scratch paper provided (see last page of exam). Place your final answers in the spaces provided.

Assume Cara Mia Hospital uses the direct method of cost allocation for its service departments. What is the total amount of service cost that would be allocated to the Emergency Room? Show and clearly label your calculations and final answer in the box below.

Assume Cara Mia Hospital uses the step method of cost allocation for its service departments. What is the total amount of service cost that would be allocated to Maternity? Show and clearly label your calculations and final answer in the box below.

Assume Cara Mia Hospital uses the reciprocal method of cost allocation for its service departments. What is the total amount of service cost that would be allocated to Intensive Care? Show and clearly label your calculations and final answer in the box below.

Reference no: EM13532474

Questions Cloud

What is your best estimate of the company cost of equity : What is your best estimate of the company cost of equity?
What are the magnitude and direction of the child : A 60 kg man is ice skating due north with a velocity of 6.0 m/s when he collides with a 38 kg child. What are the magnitude and direction of the child just before the collision
Record the purchase of fire insurance policy : a) Record the purchase of fire insurance policy on April 1, 20x2
Operation and functioning of our lymphaticsystem : Describe the overall operation and functioning of our lymphaticsystem. Be sure to highlight the function of the nodes within thissystem. Lymph nodes can be early warningsystems of diseases. Explain how this occurs and why they are animportant 'tool' ..
The direct method of cost allocation : Assume Cara Mia Hospital uses the direct method of cost allocation for its service departments. What is the total amount of service cost that would be allocated to the Emergency Room? Show and clearly label your calculations and final answer ..
Find how long will it take the block to reach the bottom : A block of mass 2.0 kg is at rest on an incline with variable angle (theta). The distance from the block to the bottom end of the incline is 300m. if the incline is set to 40 degrees, how long will it take the block to reach the bottom if it starts..
How the nervous and other systems of the body : Explain the large picture of how the nervous and other systems of the body is able to control the day-to-day beatingoperation of the heart. Research the internet to determine why this system occasionally breaks down.
At what angle should the surface be banked : A velodrome is built for use in the Olympics. The radius of curvature of the surface is 20.1 m. At what angle should the surface be banked
What is the direction of the net gravitational force : Three identical masses of 340 kg each are placed on the x axis. One mass is at X1 = -120cm, What is the direction of the net gravitational force on the mass at the origin due to the other two masses

Reviews

Write a Review

Accounting Basics Questions & Answers

  Preferred stock 8 50 par value 300000 150000 common stock

preferred stock 8 50 par value 300000 150000 common stock 10 par value 80000 shares authorized 80000 shares issued

  Cash sale of goods for more than their costpayment of

indicate how each of the following transactions affects the accounting equation.a. purchase of supplies on

  Duff beer corporation paid a 33 dollar dividend today if

duff beer corporation paid a 3.3 dollar dividend today. if the dividend is expected to grow at a constant 5 percent

  Budgeted cost of merchandise

Gross margin is typically 40% of sales. Determine the budgeted cost of merchandise purchases for July.

  The chart of accounts coding system

BRN Corporation has two divisions: California and Nevada. Both divisions have the same basic chart of accounts, which numbers current assets in the 100s, plant assets in the 200s, and so on. BRN differentiates them with an appended "C" or "N"..

  Journal entries-effects of the transactions in t-accounts

Starbucks is a coffee company-a big coffee company. Duringa 10-year period, the number of Starbucks locations grew from 165to over 5,800 stores-an average increase of 43 percent everyyear.

  What amount of warranty expense will appear

What amount will be reported in the Estimated Warranty Liability account on the December 31, 2011 balance sheet?

  How much is the total compensation expense

How much is the total compensation expense and what entry is made on January 1, 2007?

  Prepare a corrected income statement

The extraordinary loss and taxable income are both subject to a 30% tax rate. Prepare a corrected income statement beginning with "Income before income taxes."

  Accounting principle problem

Genesis Corporation is now in its 30th year of business. The founder of company is planning to retire at the end of year and turn the business over to his daughter.

  Cost of the securities

Decker Corporation purchased 1,000 shares of Kent common stock at $75 per share plus $3,000 brokerage fees as a short-term investment. The shares were subsequently sold at $80 per share less $3,400 brokerage fees.

  Compute the variable costs per unit

Compute the variable costs per unit and the contribution margin ratio for 2013 - compute the increase in fixed costs for 2014.

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