Question
9. Pepper Department store allocates its service department expenses to its various operating (sales) departments. The...
9. Pepper Department store allocates its service department
expenses to its various operating (sales) departments. The
following data is available for its service departments:
| Expense | Basis for allocation | Amount | |||
| Rent | Square feet of floor space | $ | 32,000 | ||
| Advertising | Amount of dollar sales | $ | 38,000 | ||
| Administrative | Number of employees | $ | 53,000 | ||
The following information is available for its three operating
(sales) departments:
| Department | Square Feet | Dollar Sales | Number of employees | ||||||||
| A | 3,600 | $ | 248,000 | 5 | |||||||
| B | 5,400 | $ | 372,000 | 7 | |||||||
| C | 9,000 | $ | 620,000 | 8 | |||||||
| Totals | 18,000 | $ | 1,240,000 | 20 | |||||||
What is the total expense allocated to Department B?
10. Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $113,000 each; 125 are street frontage lots and will sell for $83,000. The developer acquired the land for $1,980,000 and spent another $1,580,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using value basis. (Round your intermediate calculation to one decimal place.)
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
26. Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100...
26.
Pleasant Hills Properties is developing a golf course
subdivision that includes 225 home lots; 100 lots are golf course
lots and will sell for $103,000 each; 125 are street frontage lots
and will sell for $73,000. The developer acquired the land for
$1,880,000 and spent another $1,480,000 on street and utilities
improvement. Compute the amount of joint cost to be allocated to
the street frontage lots using value basis. (Round your
intermediate calculation to one decimal place.)
Multiple Choice...
Exercise 22-3 Service department expenses allocated to operating departments LO P2 Advertising department expenses of $75,000...
Exercise 22-3 Service department expenses allocated to operating
departments LO P2
Advertising department expenses of $75,000 and purchasing
department expenses of $58,300 of Cozy Bookstore are allocated to
operating departments on the basis of dollar sales and purchase
orders, respectively. Information about the allocation bases for
the three operating departments follows.
Department
Sales
Purchase Orders
Books
$
150,000
1,680
Magazines
84,000
945
Newspapers
66,000
875
Total
$
300,000
3,500
Complete the following table by allocating the expenses of...
Wolfpack Company has two service departments and two production departments. Budgeted costs and budgeted activity in...
Wolfpack Company has two service departments and two production
departments. Budgeted costs and budgeted activity in the various
departments for the year are shown here:
Custodial
Cafeteria
Cutting
Assembly
Departmental Costs
12,600
7,000
30,000
50,000
Square Feet Occupied
1,000
2,000
8,000
10,000
Number of Employees
20
30
150
200
Custodial service department costs are allocated on the basis of
square feet of space occu- pied. The costs of the cafeteria are
allocated on the basis of the number of employees....
Av-Y6 Company operates three service departments, administration, maintenance, and personnel and two production departments, assembly and...
Av-Y6 Company operates three service departments,
administration, maintenance, and personnel and
two production departments, assembly and packaging.
Information for the three service departments is
given below:
Admin Maint Person
Directly traced overhead $65,000 $33,000 $74,000
Square feet occupied 2,000 3,500 3,000
Number of employees 42 24 30
Maintenance hours 2,500 2,000 4,000
Information for the two production departments is
given below:
Assembly Packaging
Directly traced overhead $167,030 $114,090
Square feet occupied 2,100 1,400
Number of employees 36 18
Maintenance hours...
Av-Y6 Company operates three service departments, administration, maintenance, and personnel and two production departments, assembly and...
Av-Y6 Company operates three service departments,
administration, maintenance, and personnel and
two production departments, assembly and packaging.
Information for the three service departments is
given below:
Admin Maint Person
Directly traced overhead $69,000 $45,000 $78,000
Square feet occupied 2,000 3,500 3,000
Number of employees 36 24 30
Maintenance hours 2,500 2,000 4,000
Information for the two production departments is
given below:
Assembly Packaging
Directly traced overhead $167,040 $122,090
Square feet occupied 2,100 1,400
Number of employees 42 18
Maintenance hours...
Ultimo Co. operates three production departments as profit centers. The following information is available for its...
Ultimo Co. operates three production departments as profit
centers. The following information is available for its most recent
year. Department 2's contribution to overhead in dollars
is:
Dept.
Sales
Cost of Goods Sold
Direct Expenses
Indirect Expenses
1
$
2,500,000
$
1,750,000
$
250,000
$
200,000
2
1,000,000
375,000
100,000
250,000
3
1,750,000
750,000
375,000
50,000
Multiple Choice
$525,000.
$875,000.
$25,000.
$650,000.
$375,000.
Ready Company has two operating (production) departments:
Assembly and Painting. Assembly has 140 employees and occupies
49,200...
Technical School allocates administrative costs to its respective departments based on the number of students enrolled,...
Technical School allocates administrative costs to its
respective departments based on the number of students enrolled,
while maintenance and utilities are allocated per square feet of
the classrooms. Based on the information below, what is the total
amount allocated to the Welding Department (rounded to the nearest
dollar) if administrative costs for the school were $56,000,
maintenance fees were $18,000, and utilities were $6600?
Department
Students
Classrooms
Electrical
80
12,600
sq. ft.
Welding
60
16,800
sq. ft.
Accounting
40
8400...
Williams Company began operations in January 2017 with two operating (selling) departments and one service (office)...
Williams Company began operations in January 2017 with two
operating (selling) departments and one service (office)
department. Its departmental income statements follow.
WILLIAMS COMPANY
Departmental Income Statements
For Year Ended December 31, 2017
Clock
Mirror
Combined
Sales
$
140,000
$
85,000
$
225,000
Cost of goods sold
68,600
52,700
121,300
Gross profit
71,400
32,300
103,700
Direct expenses
Sales salaries
21,500
7,700
29,200
Advertising
1,100
900
2,000
Store supplies used
950
600
1,550
Depreciation—Equipment
2,100
800
2,900
Total direct expenses
25,650...
Williams Company began operations in January 2017 with two operating (selling) departments and one service (office)...
Williams Company began operations in January 2017 with two
operating (selling) departments and one service (office)
department. Its departmental income statements follow.
WILLIAMS COMPANY
Departmental Income Statements
For Year Ended December 31, 2017
Clock
Mirror
Combined
Sales
$
170,000
$
115,000
$
285,000
Cost of goods
sold
83,300
71,300
154,600
Gross
profit
86,700
43,700
130,400
Direct
expenses
Sales
salaries
22,500
8,000
30,500
Advertising
1,700
700
2,400
Store supplies
used
950
250
1,200
Depreciation—Equipment
2,100
400
2,500
Total direct
expenses
27,250...
Canfield Technical School allocates administrative costs to its respective departments based on the number of students...
Canfield Technical School allocates administrative costs to its
respective departments based on the number of students enrolled,
while maintenance and utilities are allocated per square feet of
the classrooms. Based on the information below, what is the total
amount of administrative cost to the Accounting Department (rounded
to the nearest dollar) if administrative costs for the school were
$80,000, maintenance fees were $15,000, and utilities were $7,500?
(Do not round your intermediate
calculation.)
Department
Students
Classrooms
Electrical
150
11,500
sq....
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 39 minutes ago
asked 57 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago