Reference no: EM133169532
Question 1 - State the reasons for allocating support department costs to the operating department. What are its various methods? Provide numerical examples of any two methods and discuss how these methods could be used to allocate these costs?
Question 2 - Z&C has two support departments, A1 and A2, and two operating departments, B1 and B2. Z&C has decided to use the direct method and allocate variable A1 dept. costs based on the number of transactions and fixed A1 dept. costs based on the number of employees. A2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers. The following information is provided:
|
Support Departments
|
Operating Departments
|
|
A1
|
A2
|
B1
|
B2
|
|
Total Department variable costs
|
5,000
|
6,000
|
38,000
|
21,000
|
|
Total department fixed costs
|
5,800
|
11,000
|
42,000
|
18,000
|
|
Number of transactions
|
15
|
18
|
80
|
45
|
|
Number of employees
|
5
|
7
|
15
|
12
|
|
Number of service requests
|
12
|
7
|
15
|
10
|
|
Number of computers
|
6
|
8
|
10
|
12
|
Allocate variable and fixed costs.
Question 3 - JTC Corporation is a metal product manufacturer that produces three products: A, B, and C. The joint costs of the three products in 2018 were SAR 50,000. The total number of units for each product and the selling price per unit are given below:
|
Product
|
Units
|
Selling Price per unit
|
|
A
|
20,000
|
SAR 6
|
|
B
|
12,500
|
SAR 5
|
|
C
|
7,500
|
SAR 4
|
Using the physical volume method and sales value at the split-off method, allocate the joint costs to each product.
Question 4 - ABC Ltd. is preparing a budget for 2018. Following are the information related to budget preparation:
Budgeted selling price per unit = SAR 200 per unit
Total fixed costs = SAR 250,000
Variable costs = SAR 65 per unit
Prepare flexible budget for 2,000, 2,500, 3,000 and 3,500 units.
|
What is company cs residual income
: You forecast Company C will earn $13 Billion of net income for 2022. Your estimate of Company C's cost of equity is 10%. What is Company C's residual income
|
|
Calculate the direct material price and usage variances
: Calculate the direct material price and usage (also called efficiency) variances and use your solution to answer the following questions
|
|
Record the necessary entries
: Gordon declared a $1.00 per share dividend on its common stock on Dec. 30, 2021. The dividend is payable on 1/31/2022. Record the necessary entries for 2021
|
|
Make the necessary entries
: On January 1, 2020, Gordon granted 2,000 stock options to company executives. Make the necessary entries for 2021
|
|
Allocate the joint costs to each product
: Using the physical volume method and sales value at the split-off method, allocate the joint costs to each product
|
|
Do cost complementarities exist for cool economic beans
: Suppose the cost function for Cool Economic Beans is giving by: C(Q1, Q2) = 64 - 0.25Q1Q2 + 0.25(Q1)2 + 0.25(Q2)2. Do cost complementarities exist for Cool
|
|
What is the future value
: To save for her newborn son's education, she will invest $20,000 at the beginning of each year for 16 years. The interest rate is 11%. What is the future value
|
|
How much should be the noncash assets be sold for
: The profit and loss sharing has been 4:3:3, For Carla to receive P12,000, how much should be the noncash assets be sold for
|
|
What is the carrying amount of the loan as of january
: Fisher Lending Corporation approved a loan in the amount of P5,000,000 on January 1, 2018. What is the carrying amount of the loan as of January 1, 2018
|