Muley Hand manufactures mane brushes for horses and mules in two operating divisions (01 and 02)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Muley Hand manufactures mane brushes for horses and mules in two operating divisions (01 and 02) and has two service departments (Human Resources and Janitorial/Maintenance). The two service departments' costs are allocated to the two operating departments as follows:. Service Department Allocation Base Human Resources # of employees Maintenance/Janitorial square footage Costs 600,000.00 800,000.00 The following table summarizes the number of employees and the square footage in each division and department. Human Resources Maintenance/Janitorial REQUIRED: Service Department Operations Human Resources Maintenance/Janitorial 01 02 Total 0 10 50 0 550 400 200 390 1000 Employees 600 Square Footage a) Allocate the costs of the two service departments to the two operating divisions using the direct allocation method. b) Allocate the costs of the two service departments to the two operating divisions using the step-down allocation method where Human Resources is allocated first and Janitorial/Maintenance is allocated second. c) Allocate the costs of the two service departments to the two operating divisions using the step-down allocation method where Janitorial/Maintenance is allocated first and Human Resources is allocated second. d) Compute the Human Resource Department cost per employee under two allocation methods (direct allocation, step-down allocations where Human Resources is first, and the step-down method where Janitorial/Maintenance is first). e) Compute the Janitorial/Maintenance cost per square foot under two allocation methods (direct allocation, step-down allocations where Human Resources is first, and the step-down method where Janitorial/Maintenance is first). Human Resources Janitorial/Maintenance Service Dept. Operating Division HR Jan/Main 01 02 Total 0 50 550 400 1000 Allocation Base Employees 10 0 200 390 600 Sq. Footage (000s) Total Costs 600,000 800,000 A. 01 02 HR (OP Divison only) Jan/Main (OP Divison only) 01 02 Total HR Allocation $ Jan/Main Allocation $ B. HR Jan/Main 01 02 Jan/Main 0.00% 0.00% Jan/Main 01 02 Total HR Allocation $ $ - Jan/ Main Allocation C. Jan/Main HR Jan/Main Allocation $ HR Allocation D. Direct Allocation Step Down-HR First Step Down-Jan First E Direct Allocation HR 01 02 0.00% 0.00% HR 01 02 Total $ 3 $ Total Employees Cost/Employee F #DIV/0! F #DIV/0! F #DIV/0! Total Sq Footage F F Cost/Sq Ft #DIV/0! #DIV/O! F #DIV/O! 3 Muley Hand manufactures mane brushes for horses and mules in two operating divisions (01 and 02) and has two service departments (Human Resources and Janitorial/Maintenance). The two service departments' costs are allocated to the two operating departments as follows:. Service Department Allocation Base Human Resources # of employees Maintenance/Janitorial square footage Costs 600,000.00 800,000.00 The following table summarizes the number of employees and the square footage in each division and department. Human Resources Maintenance/Janitorial REQUIRED: Service Department Operations Human Resources Maintenance/Janitorial 01 02 Total 0 10 50 0 550 400 200 390 1000 Employees 600 Square Footage a) Allocate the costs of the two service departments to the two operating divisions using the direct allocation method. b) Allocate the costs of the two service departments to the two operating divisions using the step-down allocation method where Human Resources is allocated first and Janitorial/Maintenance is allocated second. c) Allocate the costs of the two service departments to the two operating divisions using the step-down allocation method where Janitorial/Maintenance is allocated first and Human Resources is allocated second. d) Compute the Human Resource Department cost per employee under two allocation methods (direct allocation, step-down allocations where Human Resources is first, and the step-down method where Janitorial/Maintenance is first). e) Compute the Janitorial/Maintenance cost per square foot under two allocation methods (direct allocation, step-down allocations where Human Resources is first, and the step-down method where Janitorial/Maintenance is first). Human Resources Janitorial/Maintenance Service Dept. Operating Division HR Jan/Main 01 02 Total 0 50 550 400 1000 Allocation Base Employees 10 0 200 390 600 Sq. Footage (000s) Total Costs 600,000 800,000 A. 01 02 HR (OP Divison only) Jan/Main (OP Divison only) 01 02 Total HR Allocation $ Jan/Main Allocation $ B. HR Jan/Main 01 02 Jan/Main 0.00% 0.00% Jan/Main 01 02 Total HR Allocation $ $ - Jan/ Main Allocation C. Jan/Main HR Jan/Main Allocation $ HR Allocation D. Direct Allocation Step Down-HR First Step Down-Jan First E Direct Allocation HR 01 02 0.00% 0.00% HR 01 02 Total $ 3 $ Total Employees Cost/Employee F #DIV/0! F #DIV/0! F #DIV/0! Total Sq Footage F F Cost/Sq Ft #DIV/0! #DIV/O! F #DIV/O! 3
Expert Answer:
Related Book For
Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
Posted Date:
Students also viewed these accounting questions
-
Referring to Table 25.2, explain why you might expect Co and Cu to not form miscible alloys. TABLE 25.2 The Crystal Structures of the 3d Elements Metal Sc Ti V Cr Mn Fe Co 8 235 Ni Cu Zn Natural...
-
IVAX manufactures commercial brushes in two operating divisions ( O1 and O2) and has two service departments ( Human Resources and Janitorial/ Maintenance). The two service departments costs are...
-
For each of the following, indicate if a discrete or a continuous random variable provides the best definition: a. The amount of oil exported by Saudi Arabia in January 2019 b. The number of...
-
A middle manager at an entertainment company, upon seeing the analysis of Exercise 3, concludes that longer movies make less money. He argues that his company's films should all be cut by 30 minutes...
-
The Kare Counseling Center was incorporated as a not-for-profit voluntary health and welfare organization 10 years ago. Its adjusted trial balance as of June 30, 2017, follows. 1. Salaries and fringe...
-
Why is the evaluation of a projects success or failure somewhat subjective?
-
Sonnet, Inc., has the following budgeted standards for the month of March 2011: Average selling price per diskette $ 6.00 Total direct material cost per diskette $ 1.50 Direct manufacturing labor...
-
Find three examples of ethos, pathos, or logos in advertisements. Explain them and discuss if they are effective? Also, discuss what makes them effective? In what contexts other than political...
-
Danny wants to buy a car, so he visits a car dealer on a Saturday. Danny speaks to Adrian, a car dealer and Adrian recommends a new sedan to Danny. Danny is happy with the car and asks Adrian to...
-
What measures are taken to integrate qualitative factors, such as managerial judgment and industry expertise, into the quantitative modeling process to enrich the robustness and comprehensiveness of...
-
The diagram below shows the velocity vectors for two cars that are moving relative to each other. 25 m/s west Car 1 20 m/s west Car 2 From the frame of reference of car 2, what is the velocity of car...
-
What role do sensitivity analyses and scenario planning play in mitigating risk and assessing the resilience of financial projections to potential market fluctuations and macroeconomic variables?
-
Bangles Corporation issued 5-year, 11% bonds with a face value of $300,000 on April 1, 2019. Assume that the bonds are sold for $318,000. Interest is paid semiannually at October 1 and April 1....
-
What ethical considerations arise in agenda-setting processes, particularly regarding transparency, accountability, and the representation of marginalized voices, and how can ethical frameworks...
-
Write a paper on Background methodology and source of history of art.
-
Assessing simultaneous changes in CVP relationships Braun Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Braun incurs $240,000 of fixed operating...
-
In an audit of a corporation that has a bond issue outstanding, the trust indenture is reviewed and confirmation as to the issue is obtained from the trustee. List eight matters of importance to the...
-
Robertson Company had accounts receivable of \(\$ 200,000\) at December 31, 200X, and had provided an allowance for uncollectible accounts of \(\$ 6,000\). After performing all normal auditing...
-
Tom Jones, CPA, is auditing the financial statements of a manufacturing company with a significant amount of trade accounts receivable. Jones is satisfied that the accounts are properly summarized...
Study smarter with the SolutionInn App