Use the information in Exercise 25 to compute total cost
26. LO.5 (Step method) Use the information in Exercise 25 to compute total cost for each revenue-generating area if Prosperous Bank uses the step method of cost allocation.
27. LO.5 (Step method) Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assem- bly and finishing). The company uses the step method to allocate support department costs to operating departments. In October 2010, human resources incurred $360,000 of costs, administration incurred $558,000, and maintenance incurred $170,000. Proportions of services provided to other departments for October 2010 follow.
|
|
Human Resources
|
Administration
|
Maintenance
|
|
Human resources
|
|
10%
|
5%
|
|
Administration
|
10%
|
|
15
|
|
Maintenance
|
15
|
10
|
|
|
Assembly
|
40
|
50
|
45
|
|
Finishing
|
35
|
30
|
35
|
a. Assuming that the departments are listed in a benefits-provided ranking, what amount of cost should be assigned from human resources to each of the other departments? From administration? From maintenance?
b. What total support department cost was assigned to assembly in October? To finishing?
c. Explain why the cost allocation is affected by the order in which costs are assigned.
Answers
Status NEW
Posted 10 May 2017 09:05 AM
My Price 8.00
26------------ In-----------suf-----------fic-----------ien-----------t i-----------nfo-----------rma-----------tio-----------n
-----------27------------ re-----------fer----------- at-----------tac-----------hed----------- ex-----------cel----------- fi-----------le-----------
Attachments
file 1494407425-1320094_1_636299418416650077_capsule-question.xlsx preview (36 words )
hu-----------man----------- re-----------sou-----------rce-----------s -----------adm-----------ini-----------str-----------ati-----------on -----------$ma-----------int-----------ena-----------nce----------- $C-----------ost----------- AL-----------LOC-----------ATI-----------ONH-----------uma-----------n R-----------eso-----------urc-----------esA-----------dmi-----------nis-----------tra-----------tio-----------nMa-----------int-----------ena-----------nce-----------Hum-----------an -----------res-----------our-----------ces-----------Ass-----------emb-----------lyF-----------ini-----------shi-----------ngI-----------n A-----------mmo-----------unt-----------Tot-----------al -----------Dep-----------t C-----------ost----------- c.----------- Co-----------st -----------wil-----------l b-----------e a-----------ffe-----------cte-----------d b-----------y t-----------he -----------ord-----------er -----------it -----------is -----------all-----------ign-----------ed -----------bec-----------aus-----------e a-----------llo-----------cat-----------ion----------- de-----------pen-----------ds -----------on ----------- th-----------e r-----------ati-----------o o-----------f t-----------he -----------ser-----------vic-----------e p-----------rov-----------ide-----------d i-----------n t-----------he -----------res-----------pec-----------tiv-----------e d-----------epa-----------rtm-----------ent-----------
-----------
Not Rated(0)