Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Overhead allocations using the Direct Method
ABC Factory has three support departments and two producing departments. Information for each department for 2005 is as follows:
ABC Factory - Year 2005
Support Departments
Producing Departments
Factory
Administration
Maintenance
Cafeteria
Machining
Assembly
Budgeted overhead costs
$120,000
$100,000
$50,000
$200,000
$400,000
Direct labor hours
6,000
10,000
4,000
20,000
30,000
Square feet occupied
2,000
3,000
5,000
35,000
65,000
Number of employees
5
6
3
15
25
The factory administration costs are allocated based on direct labor hours, factory maintenance costs are allocated based on square footage occupied, and factory cafeteria costs are allocated based on the number of employees.
ABC Factory does not divide overhead into fixed and variable components. Predetermined overhead rates for the producing departments are based on direct labor hours.
Required:
a) Allocate the support department costs using the direct method.
b) Calculate the predetermined overhead rates the producing departments would use to apply overhead to units of product.
Assume that you are a technology services provider and you must decide whether to record revenue from the installation of computer software for one of your clients. Your contract calls for acceptance of the software by the client within six months of..
Jennifer opened a day care called Jennifer’s Playtime and had the following transactions. Record the journal entries in debit/credit format. Jennifer contributed the following to the business in exchange for $13,600 in common stock. Cash $5,700; comp..
Prepare the appropriate journal entries that should be recored as a result of each of these contingencies. If no journal entry is indicated, state why sheet? Curtis offers a one-year warranty against manufacturer's defects for all its products. Indus..
Which of the following items is excluded from an engagement letter?
Wallace Publishers Inc. collects 85% of its sales on account in the month of the sale and 15% in the month following the sale. If sales on account are budgeted to be $151,000 for April and $119,000 for May, what are the budgeted cash receipts from sa..
Compute the variable cost ratio and the contribution margin ratio. Compute the break-even point in units and sales ringgit. How many units must be sold to earn a profit of $30,000?
question using these 2007 annual reports for the coca-cola company and pepsico inc. answer the subsequent questions.
Supplementary financial statement that supports the cost of goods sold figure on the income statement by summarizing raw materials, direct labor, and manufacturing overhead costs incurred during the period.
Assess the extent to which MegaMart's corporate governance arrangements and situation fail to constitute governance best practice.
analysis of financial statement using horizontal analysis.common-size statement analysisa common-size income statement
prepare a flexible budgetpuget sound divers is a company that provides diving services such as underwater ship repairs
Discuss the pros and cons of financing in unhedged Eurodollars instead of via Euro euros. As you do this you must give consideration to the foreign exchange risks associated with financing in Eurodollars.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd