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Service department cost allocation. Inns Battery Company has two service departments: Maintenance and Personnel. Maintenance Department costs are allocated on the basis of budgeted maintenance-hours. Personnel Department costs are allocated based on the number of employees. Data on budgeted maintenance-hours and number of employees are as follows: Support Departments Production Departments Maintenance Department Personnel Department A B Budgeted costs $180,000 $30,000 $80,000 $120,000 Budgeted maintenance-hours n/a 240 720 240 Number of employees 20 n/a 60 120 Required: a. Using the direct method, determine the amount of support department costs to be allocated to Production Department A. b. Using the step-down method, determine the amount of Maintenance Department costs to be allocated to Production Department A, if the service department with the highest percentage of interdepartmental support service is allocated first. c. Using the reciprocal method, determine the amount of maintenance department costs to be allocated to Production Department A (round up to nearest dollar). d. List and explain two possible reasons why a manager might prefer that budgeted rather than actual cost-allocation rates be used when cost is being allocated to his/her department from another department. Use the textbook and/or other relevant resources to support your answer.
Reverse Logistics addresses failures in logistics systems.
A shirt manufacturer buys cloth by the 100 yard roll from a supplier. For setting up a control chart to manage the irregularities (e.g., loose threads and tears) the following data was collected from a sample provided by the supplier. SAMPLE 1 2 3 4 ..
Imagine that you have to explain to somebody how to make a cup of tea.
Suppose that the Best Burger has analyzed data on customer arrivals and has concluded that the mean arrival rate is 45 customers per hour. What is the probability of the following arrivals during a 1-minute period? a) Zero: b) 1 c) 5 or more
Conduct an industry analysis of the coffee industry in Philippine.
Explain how the first selected topic impacted an organizational decision. Explain how the second selected topic impacted an organizational decision.
A newspaper publisher uses roughly 890 feet of baling wire each day to secure bundles of newspapers while they are being distributed to carriers. The paper is published Monday through Saturday. Lead time is six workdays. What is the appropriate reord..
Comment on the progress that public health professionals are making to improve the health of the population.
Stakeholder Communication is different for each type or class of stakeholder.
Operations differ in at least four important respects, namely, (a) volume of their output, (b) variety of their output,
What was the most practical information you learned this term? How will you utilize this information in your professional field?
Give your opinion on whether being an effective critical thinker makes decision making easier or more challenging.
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