Best Garments has two producing departments, cloth and garments, and two service departments, personnel and store....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Best Garments has two producing departments, cloth and garments, and two service departments, personnel and store. The company's budget for April 20X1 is as follows: (Click the icon to view the budget figures.) Best Garments allocates personnel costs on the basis of number of employees and store costs on the basis of square feet. Requirements 1. Allocate personnel and store costs to the producing departments using the direct method. 2. Allocate personnel and store costs to the producing departments using the step-down method. Allocate personnel costs first. Data table Direct department costs Square feet Number of employees Service Departments Personnel $ 175,000 $ 8,700 62 Production Departments Store Cloth Garments 282,000 $2,300,000 $ 4,800 128 40,100 810 3,400,000 120,000 1,010 X Best Garments has two producing departments, cloth and garments, and two service departments, personnel and store. The company's budget for April 20X1 is as follows: (Click the icon to view the budget figures.) Best Garments allocates personnel costs on the basis of number of employees and store costs on the basis of square feet. Requirements 1. Allocate personnel and store costs to the producing departments using the direct method. 2. Allocate personnel and store costs to the producing departments using the step-down method. Allocate personnel costs first. Data table Direct department costs Square feet Number of employees Service Departments Personnel $ 175,000 $ 8,700 62 Production Departments Store Cloth Garments 282,000 $2,300,000 $ 4,800 128 40,100 810 3,400,000 120,000 1,010 X
Expert Answer:
Answer rating: 100% (QA)
To allocate personnel and store costs to the producing departments using the direct method we simply ... View the full answer
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
Posted Date:
Students also viewed these accounting questions
-
Longworth Manufacturing has two producing departments, machining and assembly, and two service departments, personnel and custodial. The companys budget for April 20X1 is as follows: Longworth...
-
Brief Exercise 208 Dos Amugus Company has income from continuing operations of $621,000 (after tax) for the year ended December 31, 2017. It also has the following items (before considering income...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
The September 30, 2018, adjusted trial balance of Buzzy?s, Inc., is shown next. Requirements 1. Prepare the September closing entries for Buzzy?s, Inc. 2. Calculate the ending balance in Retained...
-
Critical Care Hospital Critical Care Hospital will be purchasing a CATSCAN (computerized axial tomography scanner) in the next six months. The CATSCAN equipment will be installed in the radiology...
-
How far apart are the diffracting planes in a NaCl crystal for which X-rays of wavelength 1.54 make a glancing angle of 1554' in the first order?
-
Repeat the calculations of Example 6.3, but for \(80 \mathrm{~mol} \%\) of the liquid distilled. Data From Example 6.3:- Suppose the liquid of Example 6.1 [50 mol% n-heptane (A), 50 mol% n-octane...
-
Maserati Corporation purchased a new machine for its assembly process on August 1, 2012. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of...
-
Consider the following set for n N: F = {f : {1, . . . , n} {0, 1, 2} :1 i n 1, f(i) + f(i + 1)4}. (a) Given a recurrence and boundary conditions for |F|. (b) Solve the recurrence and give an...
-
1. What are the inputs, process, output, and feedback/control for a grocery store such as Sobeys? 2. What are the operations decisions for running a grocery store such as So beys? Sobeys Inc. is the...
-
The director of the city hospital has been provided with a cost benefit analysis of kidney transplantations. TC and TB being total cost and total benefit respectively, fill in for average cost (AC),...
-
A typical AA battery delivers a nearly constant voltage of 1.5 V and stores about 104 J of energy. From the time it takes you to use up the batteries in your calculator. Estimate the resistance of...
-
Both marketing and marketing communication are changing rapidly. New tools and methods are coming up and especially due t o changes in technology and the consumers themselves. Despite all these...
-
Discuss a situation where communication is important. This can be in your daily life, your work life, or in your academic life. Describe your own personal communication style preferences in the...
-
A high voltage resistive divider has bandwidth of 75 MHz. Can this divider be used for monitoring voltage signals shorter than 1.5 ns? Justify your answer?
-
Provide practical tips and strategies to improve communication with individuals with hearing disabilities. This could include using visual aids, gestures, and facial expressions, using assistive...
-
Assume that both Altoa and Calcoa emit 400 tonnes of pollutionwhile producing bauxite. Suppose both firms have tradable permitsthat allow each to emit 200 tonnes of pollution. If it costs $5,000and...
-
As indicated by mutual fund flows, investors tend to beat the market seek safety invest in last year's winner invest in last years loser
-
Who is usually responsible for sales-activity variances? Why?
-
It is better to recognize goodwill than to write up assets to their fair-market values. Do you agree? Why?
-
The net income of a company is the result of many factors. Sometimes managers want to measure the performance of one part of the organization separate from the effects of other parts. How might a...
-
There is another possible explanation for purchased goodwill appearing in a sole proprietor's statement of financial position. What do you think it might be?
-
Why do the assets need to be revalued in these cases? The business has not been sold.
-
The shown partners have always shared profits and losses in the ratio: Holt 4; Stott 2: Young 1. From 1 January the assets were to be revalued as the profit sharing ratios are to be altered soon. The...
Study smarter with the SolutionInn App