Calculate the allocations and totals, Cost Accounting

A company wishes to devise a fair means of allocating funds to its four main departments, namely Accounts, Production, Sales and Transport. The total allocation is to be £100,000. A suggested means of allocation is to award each department an initial base allocation of, say, £10,000 and to divide the remainder in proportion to the number of staff in each department.  It has been noted that certain staff use up the available budget at a far greater rate than others and, as this is (usually) on company business, the allocation formula must make allowances for such staff.  Initially it has been decided to divide the staff into two categories, A and B, and to weight the allocation in favour of those in category A (i.e. if the Weight is 3 then staff in category A are to be allocated an amount 3 times those in Category B).

Question 1, Part 1 You are asked to devise a spreadsheet to allow the financial director to explore the possibilities of varying only the Base Allocation and the Weight.  Note that the Weight has to be a positive integer between 1 and 7 inclusive.

A typical screen layout may be of the form:

Total Allocation   £100,000                 Base Allocation   £10,000                   Weight  3

Department

No. of Category A Staff

No. Of Category B Staff

             Allocation

Accounts

  7

  5

£19,570.55

Production

10

25

£30,245.40

Sales

15

  5

£28,404.91

Transport

  6

14

£21,779.14

Totals

38

49

£100,000

Produce such a spreadsheet which will calculate the allocations and totals.          

Question 1, Part 2 The management also require the facility to provide a listing of the Departments and Allocation ordered by the final allocation figures by clicking on an appropriately labelled button.  Provide this facility.

Question 1, Part 3  In addition, the financial director wishes to explore the flexibility available if it is required to guarantee, for example, that the Production Department is allocated a minimum of £32,000 without changing the total amount available. Provide another version of the spreadsheet on a separate sheet which enforces this minimum allocation.

Question 1 Requirement

Part 1 - Spreadsheet implementing weighting

Part 2 - Listing button generating ordered Department & Allocation list

Part 3 - Spreadsheet with minimum allocation of £32,000 enforced

Posted Date: 3/12/2013 3:33:25 AM | Location : United States







Related Discussions:- Calculate the allocations and totals, Assignment Help, Ask Question on Calculate the allocations and totals, Get Answer, Expert's Help, Calculate the allocations and totals Discussions

Write discussion on Calculate the allocations and totals
Your posts are moderated
Related Questions

McDaniel Company manufactures 100-pound bags of fertilizer that have the following unit standard costs for direct materials and direct labor: Direct Materials (100 lbs. @ $1.00

The employees at Warren Manufacturing Company are unionized. As minimum requirements, the union members insist on keeping a work force of at least 300 workers, and accepting an hou

Following figures are taken from annual budget of ABC manufacturers for the year 2013: Fixed factory overhead Rs. 4,000,000 Factory overhead absorption rate Rs. 70 per direct labor

Types of Standard Costs The standard cost set could be ideal, basic, attainable or current. i. Basic Standards: These are long term standards that would keep unchanged ov

cost accounting exam

Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%. Required: A) Assume break-even volume in dollars is $1,500,000. What are total fixed

Special order pricing - Shorewood Shoes Company makes and sells a variety of leather shoes for children. For its current mix of different models and seizes, the average selling pri

A company is evaluating the following lease or buy option. A four year lease with annual payments of $25,000 payable at the beginning of the year.The tax shield is available at

Economic Order Quantity This constitutes the quantity purchased of either raw materials or stocks which is considered most optimum. It is the quantity such minimizes both ord