Tenet engineering Inc operates two user divisions as separate cost objects To determine t5he costs of each division, the company allocates common costs to t6eh divisions during the past month, the following common costs were incurred Computer services(85 fixed) $345,000 Building occupancy 686,000 Personal costs 153,000 Total common costs $1184,000 The following information is available concerning various activity measures and service usages by each of the divisions Area occupied (Square feet) Division A Division B Payment 24,000 48,000 Computer time (hours) $422,000 $222,000 Computer storage(megabytes) 260 280 Equipment value 8,700 0 Operating profit (pre allocating) 263,000 313,000 682,500 622,500 A $100,258 B $102,078 C $83758 D $153,000

Question: Tenet engineering Inc. operates two user divisions as separate cost objects. To determine t5he costs of each division, the company allocates common costs to t6eh

Tenet engineering Inc. operates two user divisions as separate cost objects. To determine t5he costs of each division, the company allocates common costs to t6eh divisions . during the past month, the following common costs were incurred:

Computer services(85% fixed)	$345,000
Building occupancy	686,000
Personal costs	153,000
Total common costs	$1184,000

The following information is available concerning various activity measures and service usages by each of the divisions:

Area occupied (Square feet)	Division A	Division B
Payment	24,000	48,000
Computer time (hours)	$422,000	$222,000
Computer storage(megabytes)	260	280
Equipment value	8,700	0
Operating profit (pre-allocating)	263,000	313,000
	682,500	622,500

A. $100,258

B. $102,078

C. $83758

D. $153,000

Step by Step Solution

★★★★★

3.40 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The question is incomplete as it does not specify which common cost ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (2 attachments)

6091c1e301cd8_22571.pdf

180 KBs PDF File

6091c1e301cd8_22571.docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Three continuous foundations are shown in Figure P6.15. For each of them, what values would you use for their eccentricity and inclination in the bearing capacity calculations? Figure P6.15. |500...

The following information is available concerning the inventory of Carter Inc.: During the year, Carter sold 1,000 units. It uses a periodic inventory system. Required 1. Calculate ending inventory...

The following 2010 information is available concerning the Drake Company, which adjusts and closes its accounts every December 31: 1. Salaries accrued but unpaid total $2,840 on December 31, 2010. 2....

The following information is available concerning transactions between a parent and its wholly-owned subsidiary for the current year. The subsidiary purchased land from its parent in a prior year, at...

Tenet Engineering, Inc. operates two user divisions as separate cost objects. To determine the costs of each division, the company allocates common costs to the divisions. During the past month, the...

Contact us! 14C 400 2:21 AM 1/29/20 Way Sheila Abney opened a dormitory locator business called Room Finders near a college campus. During the best month of operations, November 2019, Sheila had the...

What is the net present value of the stadium project, which is a 3-year project where Fairfax Pizza would sell pizza in the baseball stadium? The project would involve an initial investment in...

Select and describe a broad policy area you are familiar with and you feel needs to be reviewed. This can be within an organisation you have worked with or one you are familiar with. Identify 2...

4 . Defensive merger tactics are designed to thwart takeovers and mergers. Briefly describe two examples of such tactics. Do such activities work to the advantage of shareholders all of the time? Who...

Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May 2014. The company expected to operate the...

At the time of his death in 2015, Clint had an adjusted gross estate of $6.2 million. Included in the estate is a 15% capital interest in a partnership. Clints interest is valued at $2.6 million....

Pasu International purchased a plant in Louisiana on December 31, 2015, and financed $20,000,000 of the purchase price with a 5-year note. The note bears interest at the fixed rate of 5%, and...

Mini- Case: Cash Confirmations. Refer to the mini- case Something Went Sour at Parma-lat on page C20 and respond to question 1. On page C20 There was much confusion when Italian dairy food giant...

At the time of her death, June had an adjusted gross estate of $6 million. Included in the estate were the following business interests. Fair Market Value A 30% capital interest in the JZ Partnership...

ASSET MANAGEMENT BCOM ACCOUNTING Suppose ABC mutual fund has no liabilities and owned only for stocks as followsStock shares price market valueW 1000 12 12000X 1200 ...

Tenet Engineering, Incorporated operates two user divisions asseparate cost objects. To determine the costs of each division, thecompany allocates common costs to the divisions. During the pastmont 2...

PLEASE COMPLETE NO LATER THAN 10/14 @3:30PM Each question(1,2,& 3) must be a minimum of 200 words. Please EXPLAIN answers in FULL detail and make answers knowledgeable based off the attached reading,...

Please provide a page and a half paper to answer the following question: Major factors company should be aware of/evaluate regarding future investments projects. Use the attachments to answer the...

Design an activity-based cost system for Assembly and draw the associated cost system diagram. You do not need to calculate the OH rate for each pool, but you must indicate the allocation base you...

Identify how each General Electric CEO incorporatedor failed to incorporateGE's organizational structure in their business strategy decisions. What did each CEO do well, or what should they have done...

This assignment is very urgent! Be as Accurate as possible providing explanations to each answer. Chapter 1 1.Managerial Accounting and Financial Accounting differ in the following way: A. Financial...