Use the following to answer questions 15-19: PURPLE CORPORATION Tech Support and Maintenance are the only...

 

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Use the following to answer questions 15-19: PURPLE CORPORATION Tech Support and Maintenance are the only two support departments for PURPLE CORPORATION, which has two operating departments, X and Y. The company uses departmental overhead rates with machine hours being used for Dept. X and direct labor hours for Dept. Y. Select budgeted and actual costs and operating data are as follows: Budgeted direct overhead costs Operating data: Budgeted machine hours Budgeted direct labor hours Budgeted maintentance hours Budgeted technical support hours Actual maintenance hours Actual technical support hours Actual machine hours Actual direct-labor hours Tech mh Dept. X Support Maint $350,000 $200,000 $400,000 10,000 11,000 $ The company allocates support department costs using the step method. 15. The intra company charge rate for maintenance services is: yes or no 50,000 25,000 18,000 12,000 7,000 7,000 21,000 5,000 by $ dih Dept. Y Total $322,000 $1,272,000 15,000 13,000 25,000 8,000 55,000 17. The predetermined overhead allocation rate for Department X will be: 16. For product costing purposes, the amount of Maintenance costs allocated to Department X would be: amount 26,000 18. For evaluation purposes, the amount of maintenance service costs attributable to Department X and Y will 50,000 25,000 40,000 35,000 39,000 38,000 19. Assuming that the actual costs incurred by the Tech support department totaled $390,000. evaluate the cost controls in that department. Specifically, were costs well managed, YES or NO and give the dollar amount by which you are basing your answer. Use the following to answer questions 15-19: PURPLE CORPORATION Tech Support and Maintenance are the only two support departments for PURPLE CORPORATION, which has two operating departments, X and Y. The company uses departmental overhead rates with machine hours being used for Dept. X and direct labor hours for Dept. Y. Select budgeted and actual costs and operating data are as follows: Budgeted direct overhead costs Operating data: Budgeted machine hours Budgeted direct labor hours Budgeted maintentance hours Budgeted technical support hours Actual maintenance hours Actual technical support hours Actual machine hours Actual direct-labor hours Tech mh Dept. X Support Maint $350,000 $200,000 $400,000 10,000 11,000 $ The company allocates support department costs using the step method. 15. The intra company charge rate for maintenance services is: yes or no 50,000 25,000 18,000 12,000 7,000 7,000 21,000 5,000 by $ dih Dept. Y Total $322,000 $1,272,000 15,000 13,000 25,000 8,000 55,000 17. The predetermined overhead allocation rate for Department X will be: 16. For product costing purposes, the amount of Maintenance costs allocated to Department X would be: amount 26,000 18. For evaluation purposes, the amount of maintenance service costs attributable to Department X and Y will 50,000 25,000 40,000 35,000 39,000 38,000 19. Assuming that the actual costs incurred by the Tech support department totaled $390,000. evaluate the cost controls in that department. Specifically, were costs well managed, YES or NO and give the dollar amount by which you are basing your answer.

Answer rating: 100% (QA)

mH dLH Total Particulars Tech Support Maint Dept X Dept Y Budgeted Direct OH 350000 200000 400000 32... View the full answer