Question : 21) Using the step-down method, what amount of Data Center : 1211844

 

21) Using the step-down method, what amount of Data Center Department cost will be allocated to Department Music if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

A) $117,342

B) $66,667

C) $92,592

D) $83,333

 

Answer the following questions using the information below:

 

Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis:

 

Budgeted manufacturing overhead costs:

Plant MaintenancePM (Support Dept)$350,000

Data ProcessingDP (Support Dept)$ 75,000

MachiningM (Operating Dept)$225,000

CappingC (Operating Dept)$125,000

 

Services furnished:

By Plant Maintenance (budgeted labor-hours):

to Data Processing3,500

to Machining5,000

to Capping8,200

By Data Processing (budgeted computer time):

to Plant Maintenance600

to Machining3,500

to Capping600

 

22) Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department?

A) DP= $75,000 + (600/4,700) PM

B) DP= $75,000 + (3,500/16,700) PM

C) DP= $75,000 × (600/4,700) + $350,000 × (3,340/16,700)

D) DP= $350,000 + (600/16,700) DP

23) What is the complete reciprocated cost of the Plant Maintenance Department?

A) $393,750

B) $369,459

C) $365,000

D) $375,773

 

24) What is the complete reciprocated cost of the Data Processing Department?

A) $90,000

B) $118,750

C) $122,971

D) $152,432

Answer the following questions using the information below:

 

Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis:

 

Budgeted manufacturing overhead costs:

MaintenanceM (Support Dept)$300,000

PersonnelP (Support Dept)$ 160,000

WeavingW (Weaving Dept)$650,000

ColorizingC (Colorizing Dept)$350,000

 

Services furnished:

By Maintenance (budgeted labor-hours):

to Personnel1,000

to Weaving7,000

to Colorizing4,000

By Personnel (Number of employees serviced):

Plant Maintenance10

Weaving30

Colorizing20

 

25) Which of the following linear equations represents the complete reciprocated cost of the Personnel Department?

A) P = $300,000 – $160,000 (1,000/12,000) M

B) P = (1,000/12,000) M

C) P = $160,000 + (1,000/12,000) M

D) P = $160,000

 

26) What is the complete reciprocated cost of the Maintenance Department?

A) $331,267

B) $326,667

C) $300,000

D) $0

P = $160,000 + (1,000/12,000) M

M = $300,000 + (10/60) P

M = $300,000 + (10/60) × [$160,000 +( 1,000/12,000) M]

M = $300,000 + $26,667 + (.013889) M

0.986111 M = $326,667

M = $331,267

27) What is the complete reciprocated cost of the Personnel Department?

A) $185,000

B) $187,606

C) $160,000

D) $210,000

 

28) Which of the following is an operating department?

A) machining

B) accounting

C) materials management

D) production control

 

29) Which of the following is one of the methods of allocating support department costs to operating departments?

A) dual-cost allocation method

B) incremental method

C) step-down method

D) single-rate cost allocation method

 

30) The cost-allocation method that allocates each support-department’s costs to operating departments only is the ________.

A) direct method

B) single-rate cost allocation method

C) step-down method

D) reciprocal method

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more