Question

Allocation: Fixed and Variable Costs, Budgeted Fixed and Variable Costs Biotechtron, Inc., has two research laboratories...

Allocation: Fixed and Variable Costs, Budgeted Fixed and Variable Costs

Biotechtron, Inc., has two research laboratories in the Southwest, one in Yuma, Arizona, and the other in Bernalillo, New Mexico. The owner of Biotechtron centralized the legal services function in the Yuma office and had both laboratories send any legal questions or issues to the Yuma office. The legal services support center has budgeted fixed costs of $166,000 per year and a budgeted variable rate of $61 per hour of professional time. The normal usage of the legal services center is 2,475 hours per year for the Yuma office and 2,025 hours per year for the Bernalillo office. This corresponds to the expected usage for the coming year.

Required:

1. Determine the amount of legal services support center costs that should be assigned to each office. In your computations, carry ratio values out to two decimal places. Round your final answers to the nearest dollar if rounding is required.

Yuma $
Bernalillo $

3. Now, assume that during the year, the legal services center incurred actual fixed costs of $169,100 and actual variable costs of $268,480. It delivered 4,380 hours of professional time—2,660 hours to Yuma and 1,720 hours to Bernalillo.

Determine the amount of the legal services center's costs that should be allocated to each office.

Yuma $
Bernalillo $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

ANSWER

1

Yuma=$242,275 =(2,475 *61 )+(166,000*(2,475/(2,475+2,025 )))=150,975+91,300

Bernalillo=$198,225=(2,025*61)+(166,000*(2,025/(2,475 +2,025)))=123,525+74,700

3

Yuma=$253,560=(2,660 *61)+(166,000*(2,475/(2,475+2,025 )))=162,260+91,300

Bernalillo=$179,620=(1,720 *61)+(166,000*(2,025 /(2,475+2,025 )))=104,920+74,700

---------------------------------------------------------------------

DEAR STUDENT,
If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive rating.

*****************THANK YOU**************

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
Fixed and Variable Cost Allocation Welcome Inns is a chain of motels serving business travelers in...
Fixed and Variable Cost Allocation Welcome Inns is a chain of motels serving business travelers in New Mexico and southwest Texas. The chain has grown from one motel several years ago to five motels. In 20x1, the owner of the company decided to set up an internal Accounting Department to centralize control of financial information. (Previously, local CPAs handled each motel’s bookkeeping and financial reporting.) The accounting office was opened in January 20x1 by renting space adjacent to corporate headquarters...
Metlife Law Office employ 12 full-time attorneys and 5 paraprofessionals. Budgeted variable costs include $100,000 for...
Metlife Law Office employ 12 full-time attorneys and 5 paraprofessionals. Budgeted variable costs include $100,000 for each attorney and $30,000 per paraprofessional. For 2001, fixed costs were budgeted at $250,000, but actually amounted to $300,000. Actual variable costs were $110,000 for each attorney and $30,000 for each paraprofessional. Variable and fixed costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours (a single rate method). Total budgeted labor-hours were 50,000; however, actual labor-hours were 60,000....
The following information relating to a company's overhead costs is available. Budgeted fixed overhead rate per...
The following information relating to a company's overhead costs is available. Budgeted fixed overhead rate per machine hour $ 0.50 Actual variable overhead $ 73,000 Budgeted variable overhead rate per machine hour $ 2.50 Actual fixed overhead $ 17,000 Budgeted hours allowed for actual output achieved 32,000 Based on this information, the total overhead variance is: Multiple Choice $6,000 favorable. $1,000 favorable. $7,000 favorable. $6,000 unfavorable. $1,000 unfavorable.
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...
Illumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night...
Illumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year: Budgeted costs of operating the plant for 2000 to 3000 hours: Fixed operating costs per year $500,000 Variable operating costs $900 per hour Budgeted long-run usage per year: Flashlight Division 2000 hours Night Light Division 1000 hours Practical capacity 4000 hours Assume that practical capacity is used to calculate the allocation rates. Actual...
The Speedjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the...
The Speedjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year: Budgeted costs of operating the materials laboratory for 100,000 to 200,000 technician hours per year: Fixed costs per year $8,000,000 Variable costs $70 per technician hour Budgeted long-run usage in hours per year: Large Plane Department 80,000 technician hours Small Plane Department 70,000 technician hours Budgeted amounts...
1. The Speedjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users,...
1. The Speedjet Aircraft Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year: Budgeted costs of operating the materials laboratory for 100,000 to 200,000 technician hours per year: Fixed costs per year $8,200,000 Variable costs $74 per technician hour Budgeted long-run usage in hours per year: Large Plane Department 90,000 technician hours Small Plane Department 110,000 technician hours Budgeted...
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...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead...
Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.Factory Overhead Cost Variance Analysis Mackinaw Inc. processes a base chemical into plastic. A detailed estimate of what a product should cost.Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 6,800 units of product were as follows: Standard Costs Actual Costs Direct materials 8,800 lb. at $4.90 8,700...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT