Question

7-9. The Trinity power plant that services all manufacturing facilities of Lake Eire Automotive Suppliers Inc....

7-9. The Trinity power plant that services all manufacturing facilities of Lake Eire Automotive Suppliers Inc. has a budget for the coming year. This budget has been expressed in the following monthly terms:

                        Variable:                    $16,000

                        Fixed:                         24,000

                        Total                           $40,000

Department              Practical Capacity (Kwh)              Expected monthly usage

Cleveland                              64,000                                    22,000

Akron                                   42,000                                    18,000

Canton                                 28,000                                    20,000

Youngstown                        26,000                                    20,000

                                           160,000                                  80,000

7. Required: What budgeted amounts will be allocated to each manufacturing department if the rate is calculated on practical capacity? Round percentages to two place past the decimal point.

Allocated based on practical capacity:

Cleveland      _______   =       % * $            =   $

                       

                       

Akron            

                       

Canton          

                       

Youngstown

                       

8. Required: What budgeted amounts will be allocated to each manufacturing department if the rate is calculated on expected monthly usage? Round percentages to two place past the decimal point.

Allocated based on expected monthly usage:

Cleveland      _______ =             % * $               = $

                       

                       

Akron            

Canton          

                       

Youngstown

                       

9. Required: What budgeted amounts will be allocated to each manufacturing department if the rate is calculated using the dual rate method? Variable costs are allocated based on expected monthly usage. Fixed costs are allocated on the basis of practical capacity. Round percentages to two place past the decimal point.

Variable costs allocated based on expected monthly usage:

Cleveland      _______ =             % * $               = $

                       

                       

Akron            

Canton          

                       

Youngstown

Fixed costs allocated based on practical capacity:

Cleveland      _______ =             % * $               = $

                       

                       

Akron            

Canton          

                       

Youngstown

           

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

7)Allocation rate=total costs/practical capacity
=40000/160000=0.25
Cleveland=64000*0.25=16000
Akron=42000*0.25=10500
Canton=28000*0.25=7000
Youngstown=26000*0.25=6500
8)Allocation rate=total costsmonthly usage
=40000/80000=0.5
Cleveland=22000*0.5=11000
Akron=18000*0.5=9000
Canton=20000*0.5=10000
Youngstown=20000*0.5=10000

9)for expected usage uses variable costs and for practical capacity use fixed costs
allocation for expected monthly=16000/80000=0.2
Allocation for practical capacity=24000/160000=0.15
Cleveland=(64000*0.15)+(22000*0.2)=14000
Akron=(42000*0.15)+(18000*0.2)=9900
Canton=(28000*0.15)+(20000*0.2)=8200
Youngstown=(26000*0.15)+(20000*0.2)=7900

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The cutting department of Morgan Manufacturing Company operated during June 2017 with the following manufacturing overhead...
The cutting department of Morgan Manufacturing Company operated during June 2017 with the following manufacturing overhead cost budget based on 10,000 hours of monthly productive capacity: Cutting Department Overhead Budget (10,000 hours) For the Month of June 2017 Variable costs: Factory supplies…………………………......$200,000 Indirect labor……………………………………304,000 Utilities (usage charge)………….……….. 136,000     Total variable overhead………………… $640,000 Fixed costs: Supervisory salaries………………………… $320,000 Factory insurance…………………………… 64,000 Utilities (base charge)…………………….. 160,000     Total fixed overhead………………....... $544,000 Total manufacturing overhead…......... $1,184,000 The cutting department was operated for...
Mike’s Services Corporation provides flavoring agents to the food industry. It has two Support departments --...
Mike’s Services Corporation provides flavoring agents to the food industry. It has two Support departments -- Engineering and Materials Management -- and two Operating departments--Machining and Assembly. Mike's Services Corporation: Material Management Department Practical capacity 5,000 hours Fixed costs of the materials services department 4,000 labor hours to 5,000 labor hours range 500,000 Budgeted usage (qty) of materials management labor hours required to support the departments: Machining Department 1,000 Hours Assembly Department 3,000 Hours Total 4,000 Hours Budgeted variable cost...
Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc.,...
Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $67,405 per year Variable costs (supplies): $1.45 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows: Yearly hours...
Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc.,...
Calculating and Using Dual Charging Rates The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): $64,900 per year Variable costs (supplies): $1.35 per maintenance hour The Assembly and Packaging departments expect to use maintenance hours relatively evenly throughout the year. The Fabricating Department typically uses more maintenance hours in the month of November. Estimated usage in hours for the year and for the peak month is as follows: Yearly Hours...
lexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the...
lexible Budget Application The polishing department of Taylor Manufacturing Company operated during April 2016 with the following manufacturing overhead cost budget based on 5,000 hours of monthly productive capacity: Taylor Manufacturing Company Polishing Department Overhead Budget (5,000 Hours) For the Month of April 2016 Variable costs:    Factory supplies $100,000    Indirect labor 152,000    Utilities 68,000    Patent royalties on secret process 296,000        Total variable overhead $616,000 Fixed costs:    Supervisory salaries 160,000    Depreciation on factory equipment...
Problem 7-2A a-c (Video) The management of Shatner Manufacturing Company is trying to decide whether to...
Problem 7-2A a-c (Video) The management of Shatner Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called CISCO, is a component of the company’s finished product. The following information was collected from the accounting records and production data for the year ending December 31, 2020. 1. 7,900 units of CISCO were produced in the Machining Department. 2. Variable manufacturing costs applicable to the production of each...
Part 4 USB Inc. predicted 2018 variable and fixed costs are as follows: Company budgeted for:...
Part 4 USB Inc. predicted 2018 variable and fixed costs are as follows: Company budgeted for: 43,200 Units Variable costs Fixed costs Manufacturing 734,400 172,800 Selling and Administrative 216,000 60,500 Total 950,400 233,300 USB Inc. produces a wide variety of computer interface devices. Per unit manufacturing cost information about one of these products, a high-capacity flash drive is as follows: Direct material $6 Direct labor 8 Variable Manufacturing Overhead 3 Fixed Manufacturing Overhead -allocated per unit 4 Total manufacturing costs...
Part 4 USB Inc. predicted 2018 variable and fixed costs are as follows: Company budgeted for:...
Part 4 USB Inc. predicted 2018 variable and fixed costs are as follows: Company budgeted for: 43,200 Units Variable costs Fixed costs Manufacturing 734,400 172,800 Selling and Administrative 216,000 60,500 Total 950,400 233,300 USB Inc. produces a wide variety of computer interface devices. Per unit manufacturing cost information about one of these products, a high-capacity flash drive is as follows: Direct material $6 Direct labor 8 Variable Manufacturing Overhead 3 Fixed Manufacturing Overhead -allocated per unit 4 Total manufacturing costs...
Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost...
Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 7,000 hours. Variable costs: Indirect factory wages $21,000 Power and light 15,540 Indirect materials 13,440 Total variable cost $49,980 Fixed costs: Supervisory salaries $12,720 Depreciation of plant and equipment 32,630 Insurance and property taxes 9,950 Total fixed cost 55,300 Total...
Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared...
Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 5,400 hours. Variable costs:    Indirect factory wages $17,280    Power and light 9,720    Indirect materials 8,100     Total variable cost $35,100 Fixed costs:    Supervisory salaries $10,180    Depreciation of plant and equipment 26,130    Insurance and property taxes 7,970...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT