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Category > Accounting Posted 11 Aug 2017 My Price 13.00

RAH Manufacturing Company

Hello, can you show the calculations for these problems

 

 

 

The RAH Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department's costs of $300,000 are allocated on the basis of machine hours. The Accounting Department's costs of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $300,000 and $500,000, respectively.

Maint Acctg A B

 

machine hours 480 20 2300 200

 

number of employees 2 2 8 4

 

 

 

 

  1. What is the cost of the Accounting Department's cost allocated to Department A using the step method and assuming the Maintenance Department's costs are allocated first?
    A. $81,333
    B. $81,587
    C. $80,000
    D. $68,571

please show the calculations for this problem

  1. Last year, Twins Company reported $750,000 in sales (25,000 units) and a net operating income of $25,000. At the break-even point, the company's total contribution margin equals $500,000. Based on this information, the company's:
    A. contribution margin ratio is 40%.
    B. break-even point is 24,000 units.
    C. variable expense per unit is $9.
    D. variable expenses are 60% of sales.

I know C is the answer for this one, but I do not know the calculations

Answers

(5)
Status NEW Posted 11 Aug 2017 01:08 PM My Price 13.00

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