User Account

All Pages

Problem related to reciprocal method

Assignment Help Accounting Basics
Reference no: EM13157919

Kumar Company has two producing departments and two support centers. The following budgeted data pertain to these four departments

Support department producing department

Maintenance personnel assembly painting

Overhead $200,000 $60,000 $43,000 $74,000

Square footage ---- 2,700 5,400 5,400

Number of employees 30 ---- 72 198

Direct labor ---- ---- 25,000 40,000

Required:

1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. Bases for allocation are: maintenance-square footage, personnel- number of employees. (round to the nearest dollar)

2. Using direct labor hours, compute departmental overhead rates for the two producing departments. (round to the nearest cent)

Reference no: EM13157919

Questions Cloud

State what is the mass fraction : The Al2O3 does not react. If the sample residue weighs 2.675 g, what is the mass fraction of Fe2O3 in the original sample?
State the addition of nh3 precipitated : A powder contains FeSO4·7H2O (molar mass = 278.01 g/mol) among other components. A 3.585-g sample of the powder was dissolved in HNO3 and heated to convert all iron to Fe3
Determine and compute comprehensive income for 2013. : Instructions (1) Determine other comprehensive income for 2013. (2) Compute comprehensive income for 2013
State the ph of the solution at the equivalence point : The pH of the solution at the equivalence point. e) The pH of the solution after 40.0 mL of HCl are added.
Problem related to reciprocal method : Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. Bases for allocation are: maintenance-square footage, personnel- number of employees. (round to the nearest dollar)
Ideally what should the ratio between the three slopes : Ideally what should the ratio between the three slopes (AlCl3 slope= 483.0 , CaCl2 slope= 421.4, and NaCl slope= 181.9) be? What are your actual experimental ratios?
Explain the change in conductivity as the concentration : describe the change in conductivity as the concentration of the NaCl solution was increased by the addition of NaCl drops
Which goods will be produced and exported by us : If the relative wage w/w* for US decreases to 5 due to productivity changes, which country would now be exporter of books, and why?
Cash disbursements budgets : Need to be prepared because GASB standards specify the use of the accrual basis of accounting for governments.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Yearly allowance for doubtful accounts

The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz Co. should be 2% of net credit sales.

  Problem regarding to common stockholders

Bunting Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in 2007. The weighted average number of shares outstanding in 2007 was 50,000 shares.

  Prepare a sales budget for the third quarter of the year

Keep-it-Hot Inc. manufactures popular thermoses. On June 30, the company had 1,000 thermoses in inventory. Each thermos sells for $8.00. The company's policy is to maintain a thermos inventory equal to 10% of next month's sales.

  Calculate elaine''s current basis in her partnership interest

Elaine's original basis in the Hornbeam Partnership was $25,000. Her share of the taxable income from the partnership since she purchased the interest has been $100,000, and Elaine has received $75,000 in cash distributions from the partnership

  Profitable business under certain conditions

Her other projections include an initial inventory of $15,000, assembly training for $2,500, cost of goods sold (COGS) approximately $35,000, selling expenses of $9,000 and general and administrative expenses of $7,000. She expects to pay 25% of h..

  Entries to reflect the transactions

Under the expenses warranty treatment give the entries to reflect the above transactions (accrual method) for 2008 and 2009.

  What are the limitation,uniqueness

What are the limitation,uniqueness and two illustration of bank reconciliation.

  Determining cafr financial statements

The City of Springfield has three pension plans: a locally administered police plan for which it is trustee, a statewide cost sharing plan, and a statewide agency plan. The City would include in its CAFR financial statements for:

  Renting prime store space

Lisa's Boutique is renting prime store space at the Regional mall and just signed a five-year lease effective January 1, with the following terms:

  What is faith adjusted basis for her one-tenth undivided

Faith inherited an undivided interest in a parcel of land from her father on February 15, 2005. Her father had purchased the land on August 25, 1965, and his basis for the land was $325,000.

  Budgeted variable factory overhead rate

Davie Corporation is preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable factory overhead rate is $6.00 per direct labor-hour; the budgeted fixed factory overhead is $92,000 per month, of which $16..

  Problem related to prepaid premiums

Carin, a widow, elected to recieve the proceeds of a $100,000 life insurance policy on the life of her deceased husband in 10 installments of $15,000 each. Her husband had prepaid premiums of $75,000 on the policy. In the first year, Carin collect..

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