A manufacturing firm has 2 production centers (Assembly and Finishing) and 2 service centers (Stores and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A manufacturing firm has 2 production centers (Assembly and Finishing) and 2 service centers (Stores and Maintenance) below is their budgeted cost for the year Production Cost Center Assembly Finishing Ghe Ghe 14,000 23,000 16,500 13,000 Service Cost Center Maintenance Tota! Ghe 73,000 46,500 37,500 14,000 18,500 37,500 227,000 Stores Ghé Ghe 9,000 5,500 Consumable materials Staff costs Reat & Rates Contents Insurance Heating & Lighting Depreciation on equipment ete 27,000 11,500 The following infermation is also available Assembly 2,750 4350,000 20 Finishing Stores 1,350 250,000 75,000 20 Maintenance | Totai Floor Ares (m) Value of equipment Number of employees 600 300 $75,000 5,000 750,000 15 60 i. Prepare an overhead analysis for each center (10 marks) ii. Re-apportion the service department costs to the production cost centers. Re-spportionment • Assume stores cost are re-apportioned based on material acquisition Maintenance is re-apportioned based on maintenance hours (10 marks) Assembly Finishing 750 Stores Maintenance Material roquisitions 1500 Maintenance hours Total 2500 250 86 66 18 20 190 A manufacturing firm has 2 production centers (Assembly and Finishing) and 2 service centers (Stores and Maintenance) below is their budgeted cost for the year Production Cost Center Assembly Finishing Ghe Ghe 14,000 23,000 16,500 13,000 Service Cost Center Maintenance Tota! Ghe 73,000 46,500 37,500 14,000 18,500 37,500 227,000 Stores Ghé Ghe 9,000 5,500 Consumable materials Staff costs Reat & Rates Contents Insurance Heating & Lighting Depreciation on equipment ete 27,000 11,500 The following infermation is also available Assembly 2,750 4350,000 20 Finishing Stores 1,350 250,000 75,000 20 Maintenance | Totai Floor Ares (m) Value of equipment Number of employees 600 300 $75,000 5,000 750,000 15 60 i. Prepare an overhead analysis for each center (10 marks) ii. Re-apportion the service department costs to the production cost centers. Re-spportionment • Assume stores cost are re-apportioned based on material acquisition Maintenance is re-apportioned based on maintenance hours (10 marks) Assembly Finishing 750 Stores Maintenance Material roquisitions 1500 Maintenance hours Total 2500 250 86 66 18 20 190
Expert Answer:
Answer rating: 100% (QA)
Step 1 Under primary distribution overhead is distribut... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date:
Students also viewed these accounting questions
-
A manufacturing firm has received a contract to assemble 1000units of test equipment in the next year. The firm must decide how to organize its assembly operation. Skilled workers, at $22 per hour...
-
A manufacturing firm has collected information on the number of defects produced each day for the past 50 days. The data have been described by the accompanying Minitab box-and-whisker plot. a. What...
-
A manufacturing firm has two suppliers for an electrical component used in its process: one in Mexico and one in China. The supplier in Mexico ships 82% of all the electrical components used by the...
-
The IQ and VIQ are tools insurance producers use to learn more about internal assumptions regarding factors that ultimately control policy performance. They have information in all of the following...
-
At the beginning of the current season on April 1, the ledger of Gage Pro Shop showed Cash $3,000, Inventory $4,000, and Owners Capital $7,000. These transactions occurred during April 2017. Apr. 5...
-
Rodriguez Corporation includes the following items in its liabilities at December 31, 2025. 1. Notes payable, $25,000,000, due June 30, 2026. 2. Deposits from customers on equipment ordered by them...
-
A hybrid carbon-aramid/epoxy composite is made by randomly mixing continuous aligned fibers of the same diameter, so that there are two carbon fibers for each aramid fiber. The fibers are assumed to...
-
What is the rationale for accounting for nonexpendable endowment funds on a full, rather than a modied, accrual basis? Why is it important that depreciation be charged on long-term assets held as...
-
Write a paper on one of the following topics: Describe the likely short-run and long-run economic consequences of EITHER (a) The COVID-19 pandemic and the associated lockdowns OR (b) Climate change....
-
Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business...
-
b) Consider the polynomial functions f (x) = 3x* - 16x + 18x? answer the followings %3D | (i) (ii) (ii) (iv) (v) (vi) Using above information graph the function. Determine End Behavior. Determine...
-
Explain how the Eighth Amendment applies to sentence length.
-
What types of punishment are considered cruel and unusual?
-
Provide an example of a law that could be considered void for overbreadth.
-
List several types of speech that are not protected under the First Amendment.
-
Provide an example of a law that could be considered void for vagueness.
-
A 5 1 - kg woman eats a 5 7 1 Calorie ( 5 7 1 kcal ) jelly doughnut for breakfast. ( a ) How many joules of energy are the equivalent of one jelly doughnut? J ( b ) How many steps must the woman...
-
TRUE-FALSE QUESTIONS 1. In terms of preliminary analytical procedures, assume that the company has introduced a new product with a low price point and significant customer demand. The auditor would...
-
Ridgeway Company reports the following information pertaining to its operating activities: During the year, the company purchased $35,000 of direct materials and incurred $22,000 of direct labor...
-
Explain how the high-low method determines: a. The variable portion of a semivariable cost. b. The fixed portion of a semivariable cost.
-
During the current year, Ramirez Developers disposed of plant assets in the following transactions: Feb. 10 Office equipment costing $26,000 was given to a scrap dealer at no charge. At the date of...
-
What are the differences among an onsite team, a virtual team, a task force, and a committee? What are some of the potential differences in dynamics between people in these different groups?
-
Compare and contrast disciplinary, interdisciplinary, and crossfunctional teams.
-
What are some of the unique challenges associated with teamwork in health care? How do you see teamwork fitting in with the accountable care organization (ACO) mandates? Describe three benefits and...
Study smarter with the SolutionInn App