Which method an organisation should use

Assignment Help Managerial Accounting
Reference no: EM132669116

Landscaping Matters, a landscape gardening business, allocates advertising expenses to its two services, Little Lawns and Corporate Solutions. It uses sales as the cost driver. For the current year the sales for Little Lawns are estimated to be $150 000 and for Corporate Solutions $750 000. The total advertising expenses are budgeted at $40 000.

Required:

Problem 1. Calculate the budgeted/estimated indirect cost (allocation) rate for the advertising expenses. Please show all workings

Problem 2. There are three different cost allocation methods that an organisation can use; direct, step-down and reciprocal. What would you consider when recommending which method an organisation should use?

Reference no: EM132669116

Questions Cloud

Important aspect of international risk management : What do you think is the most important aspect of international risk management for a manager? Why?
Conventional approach to strategic innovation management : Please explain the processual and contingency approaches used by the effective change manager by providing the answers to the following questions
How much is the cost per machine hour : Using the high-low method, how much is the cost per machine hour? Portman Company's activity for the first three months of 2016.
Presence of ethical management : How does the existence, or lack thereof, a CSR policy demonstrate, or not, the presence of ethical management?
Which method an organisation should use : Landscaping Matters, a landscape gardening business, What would you consider when recommending which method an organisation should use?
Ethics on the organizational strategy and profitability : What is the impact of ethics on the organizational strategy and profitability? Be sure to cite your response
Consumer price index ability to anticipate trends : Provide a description and assessment of the consumer price index's ability to anticipate trends.
Find what is the present value of windfall : Find What is the present value of your windfall if the appropriate discount rate is 2.4 percent? (Round time value factors to 6 decimal places )
What are the negative consequences of ehr system : What are the negative consequences of EHR system if this system fails in health care organizations?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine the volume at which fastq would be indifferent

Present a decision rule that would enable FastQ company to select the most pro?table machine without having to make a separate cost calculation.

  Discuss the three costing methods of process costing

Discuss the three costing methods of job order costing, process costing, and activity-based costing. and Compare and contrast.

  Which is a correct conclusion from the analysis

Which is a correct conclusion from the analysis? The trend analysis report of Marswell, Inc. is given below (in millions) Net income for 2017

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Construct a statement of cost of goods manufactured

Depreciation expense,Make a statement of cost of goods manufactured and an income statement for Huntersville for the year ended December 31.

  Compute the labor rate and efficiency variances for august

Compute the variable overhead rate and efficiency variances for August. Compute the materials price and quantity variances for August.

  Compute the unit product cost that would appear on the job

Job 243 was recently completed. Compute the unit product cost that would appear on the job cost sheet for this job. (Round your answer to 2 decimal places.)

  Prepare a normal-costing income statement for the month

Prepare a normal-costing income statement for the month Reconcile the difference in net income between the absorption-costing and normal-costing methods.

  Prepare a schedule for month showing budgeted cash receipts

Prepare a schedule for each month showing budgeted cash disbursements for Clay Company. Prepare a schedule for each month showing budgeted cash receipts

  What is the maximum transfer price

The company uses the opportunity cost approach to transfer pricing. What is the minimum transfer price in Case 2? What is the maximum transfer price

  Determine the amount of costs in the raw materials

Determine the amount of costs in the Raw Materials, Work in Process, and Finished Goods inventory accounts as at the date of the tornado.

  Find which model would cyclepath prefer to sell to maximize

Find Which model would CyclePath prefer to sell to maximize overall company profit? Explain. Calculate the contribution margin per unit

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