User Account

All Pages

Allocate the costs of the service departments

Assignment Help Cost Accounting
Reference no: EM132561779

The Cutright Company has a small factory with two service departments, Power and Maintenance, and two producing departments, Cutting and Assembly.

The Power Department cost is allocated on the basis of kilowatt hours, and the Maintenance Department cost is allocated on the basis of maintenance hours. The following information is available:

                                                               Power                      Maintenance                    Cutting                      Assembly

Departmental Cost                              $100,00                   $40,000                   $200,000                 $160,000

before allocations

Kilowatt hours                                      50                              200                            600                         200

Maintenance                                         20                                30                             150                      100

Required:

Question 1: Using the Direct Method and Step Method, allocate the costs of the service departments to the 2 operating departments.

Reference no: EM132561779

Questions Cloud

How to make a production report for the department : How to Make a production report for the department using the weighted-average method. Costs in the beginning inventory. Costs added to production during month
What is the merchandise inventory of Oriole at December : On January 1, 2017, the merchandise inventory of Oriole, Inc. was $1750000. What is the merchandise inventory of Oriole at December 31, 2017
Terms of gene flow and interbreeding between species : Explain what this means in terms of gene flow and interbreeding between species.
Determine whether the company should produce special order : ABC Company has annual productive capacity of 70000 units per year. Determine whether the company should produce the special order
Allocate the costs of the service departments : The Cutright Company, Using the Direct Method and Step Method, allocate the costs of the service departments to the 2 operating departments.
Should abc company make or buy the component : Question - BUY OR MAKE Problem. Based upon relevant cost differences, should ABC Company make or buy the component. Show the calculation
Prepare income statement using variable method : Prepare income statement using VARIABLE method. The information had been gathered for the year ended December 2019 from Rjfn manufacturing.
What is the chance that person will have sickle cell anemia : Normal hemoglobin ("S") is dominant over sickle cell hemoglobin ("s"). If a person with SS hemoglobin has a child with a person
Manage supply chain risk during current covid-19 pandemic : What are some of the services that these companies offer to help their customers manage supply chain risk during current COVID-19 pandemic

Reviews

Write a Review

Cost Accounting Questions & Answers

  What is the gross profit on the sale of all xen products

What is the total gross profit/(loss) on the sale of all the joint products? What is the gross profit/(loss) on the sale of all Xen products?

  Prepare a merchandise purchases budget

Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Omit the "tiny_mce_markerquot; sign in your response.)

  Discuss in brief four key users of financial statements

What did your analysis tell you about these companies?wHAT are The four key users of financial statements are owners/managers

  Prepare journal entries

Create journal entries to record the accounting for both the normal and abnormal rework and what were the total rework costs of XD1 chips in August 2011?

  Evaluate each of the given incentive plans at mcdonalds

Evaluate each of these incentive plans. Are there better alternatives? Be sure to consider the important things a manager and a restaurant should do to contribute to McDonald's overall company success.

  Calculate diluted earnings per share

Calculate basic earnings per share, carefully showing all of your work and calculate diluted earnings per share, carefully showing all of your work.

  How would you handle the various complaints

You are the manager at a large call center that markets insurance products. Part of your duties is handling internal complaints from employees and external

  What inventory costs would be carried

Assume that the performance of the top manager of the company is evaluated and rewarded largely on the basis of reported operating income. Which costing method would the manager prefer?Why?

  Prepare flexible manufacturing budget for relevant range

Prepare a flexible manufacturing budget for the relevant range value using 19,490 unit increments.

  What is the actual price paid by rexford to purchase

What is the actual price paid by Rexford to purchase an ounce of direct material? The about Rexford Corporation's direct material cost

  Calculate after-tax weighted average cost of capital

Calculate after-tax Weighted Average Cost of Capital. Assuming Pacific Energy Limited's credit rating is AAA, what alternative capital structure would you recommend lowering the cost of capital to the company

  Develop a direct labor budget for the months of june

Develop a direct labor budget for the months of June, July, and August and for each type of direct labor.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd