Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 438 Weeks Ago, 6 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 28 May 2017 My Price 8.00

Activity-Based Costing for an Administrative Service

 

Activity-Based Costing for an Administrative Service

John’s Custom Computer Shop (JCCS) assembles computers for both individual and corporate customers. The company is organized into two divisions: Personal and Business. Once a computer is built, it is shipped to the customer. Billing for all customers is handled by the corporate Accounts Receivable department. Accounts Receivable performs two major activities: billing and dispute resolution. Billing refers to preparing and sending the bills as well as processing the payments. Dispute resolution occurs when a customer refuses to pay, usually due to an error in billing.

The costs of the Accounts Receivable department are allocated to the two divisions based on the number of bills prepared. Kyle, the manager of the business division, has complained that the allocated costs from Accounts Receivable are beginning to make the business division look unprofitable and has asked you to recommend some changes to the allocation system. If he agrees with your recommendation, he will pass them on to the Chief Financial Officer. Data on costs and activities in the Accounts Receivable department follow:

 

Personal

Business

Total

Number of bills prepared

600

400

1,000

Number of disputes

60

12

72

The Accounts Receivable department incurred the following costs during the year:

Billing

$

48,000

Dispute resolution

 

36,000

Total

$

84,000

Required

a. Under the current allocation system, what is the cost that will be allocated from Accounts Receivable to Personal? To Business?

b. Suppose the company implements an activity-based cost system for Accounts Receivable with two activities, billing and dispute resolution. What is the cost that will be allocated from Accounts Receivable to Personal? To Business? Use the number of bills prepared as the cost driver for billing costs and the number of disputes for dispute resolution costs.

 
 

Answers

Alpha Geek
(8)
Status NEW Posted 28 May 2017 09:05 AM My Price 8.00

-----------

Attachments

file 1495964585-691130_1_636314485369100070_ABC-allocation.xlsx preview (341 words )
69-----------113-----------0&a-----------mp;-----------amp-----------;in-----------foI-----------d=5-----------062-----------57&-----------amp-----------;am-----------p;A-----------cti-----------vit-----------y-B-----------ase-----------d C-----------ost-----------ing----------- fo-----------r a-----------n A-----------dmi-----------nis-----------tra-----------tiv-----------e S-----------erv-----------ice-----------Joh-----------nâ€-----------™s -----------Cus-----------tom----------- Co-----------mpu-----------ter----------- Sh-----------op -----------(JC-----------CS)----------- as-----------sem-----------ble-----------s c-----------omp-----------ute-----------rs -----------for----------- bo-----------th -----------ind-----------ivi-----------dua-----------l a-----------nd -----------cor-----------por-----------ate----------- cu-----------sto-----------mer-----------s. -----------The----------- co-----------mpa-----------ny -----------is -----------org-----------ani-----------zed----------- in-----------to -----------two----------- di-----------vis-----------ion-----------s: -----------Per-----------son-----------al -----------and----------- Bu-----------sin-----------ess-----------. O-----------nce----------- a -----------com-----------put-----------er -----------is -----------bui-----------lt,----------- it----------- is----------- sh-----------ipp-----------ed -----------to -----------the----------- cu-----------sto-----------mer-----------. B-----------ill-----------ing----------- fo-----------r a-----------ll -----------cus-----------tom-----------ers----------- is----------- ha-----------ndl-----------ed -----------by -----------the----------- co-----------rpo-----------rat-----------e A-----------cco-----------unt-----------s R-----------ece-----------iva-----------ble----------- de-----------par-----------tme-----------nt.----------- Ac-----------cou-----------nts----------- Re-----------cei-----------vab-----------le -----------per-----------for-----------ms
Not Rated(0)