The cost allocation system at LastCall allocates all corporate costs to the divisions based on a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The cost allocation system at LastCall allocates all corporate costs to the divisions based on a variety of cost allocation bases. Personnel costs are allocated based on the average number of employees in the two divisions. There are two basic activities in the Personnel Department. The first, called employee maintenance, manages employee records. Virtually all of this activity occurs when employees are hired or leave the company. The other activity is payroll, which is an ongoing activity and requires the same amount of work for each employee regardless of the employee's salary. Assorted data for LastCall for the last year follow. Number of employees (average) Laid Back 100 Stressed Out 25 Total 125 Employees hired/leaving 6 20 26 The Personnel Department incurred the following costs during the year. Employee maintenance Payroll Total $182,000 12,500 $194,500 Required: a. Under the current allocation system, what are the costs that will be allocated from personnel to Laid Back? To Stressed Out? b. Suppose the company implements an activity-based cost system for personnel with the two activities, employee maintenance and payroll. Use the number of employees hired/leaving as the cost driver for employee maintenance costs and the average number of employees for payroll costs. What are the costs that will be allocated from personnel to LaidBack? To Stressed Out? Complete this question by entering your answers in the tabs below. Required A Required B Under the current allocation system, what are the costs that will be allocated from personnel to Laid Back? To Stressed Out? (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Allocated costs LaidBack Stressed Out Complete this question by entering your answers in the tabs below. Required A Required B Suppose the company implements an activity-based cost system for personnel with the two activities, employee maintenance and payroll. Use the number of employees hired/leaving as the cost driver for employee maintenance costs and the average number of employees for payroll costs. What are the costs that will be allocated from personnel to LaidBack? To StressedOut? Employee maintenance Payroll LaidBack Stressed Out Show less The cost allocation system at LastCall allocates all corporate costs to the divisions based on a variety of cost allocation bases. Personnel costs are allocated based on the average number of employees in the two divisions. There are two basic activities in the Personnel Department. The first, called employee maintenance, manages employee records. Virtually all of this activity occurs when employees are hired or leave the company. The other activity is payroll, which is an ongoing activity and requires the same amount of work for each employee regardless of the employee's salary. Assorted data for LastCall for the last year follow. Number of employees (average) Laid Back 100 Stressed Out 25 Total 125 Employees hired/leaving 6 20 26 The Personnel Department incurred the following costs during the year. Employee maintenance Payroll Total $182,000 12,500 $194,500 Required: a. Under the current allocation system, what are the costs that will be allocated from personnel to Laid Back? To Stressed Out? b. Suppose the company implements an activity-based cost system for personnel with the two activities, employee maintenance and payroll. Use the number of employees hired/leaving as the cost driver for employee maintenance costs and the average number of employees for payroll costs. What are the costs that will be allocated from personnel to LaidBack? To Stressed Out? Complete this question by entering your answers in the tabs below. Required A Required B Under the current allocation system, what are the costs that will be allocated from personnel to Laid Back? To Stressed Out? (Do not round intermediate calculations and round your answers to the nearest whole dollar.) Allocated costs LaidBack Stressed Out Complete this question by entering your answers in the tabs below. Required A Required B Suppose the company implements an activity-based cost system for personnel with the two activities, employee maintenance and payroll. Use the number of employees hired/leaving as the cost driver for employee maintenance costs and the average number of employees for payroll costs. What are the costs that will be allocated from personnel to LaidBack? To StressedOut? Employee maintenance Payroll LaidBack Stressed Out Show less
Expert Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
You can afford a $ 1 1 0 0 per month mortgage payment. You've found a 3 0 year loan at 6 % interest. a ) How big of a loan can you afford? $ b ) How much total money will you pay the loan company? $...
-
I am struggling with coming up with the Excel spreadsheet for a cost benefit analysis. Please see below for the assignment scenario. I have most of the paper written but could use help with the Excel...
-
The personnel department at LastCall Enterprises handles many administrative tasks for the two divisions that make up LastCall: LaidBack and StressedOut. LaidBack division manages the companys...
-
All of the following represent trends shaping HR over the past decade, according to our reading, except: Organizations are spending more on the expansion of physical office space Employees are...
-
Using normal approximation, find the probability of obtaining at least 90 heads in 150 tosses of a fair coin. Is the normal approximation valid? Why?
-
There is an array A made of N integers. Your task is to choose as many integers from A as possible so that, when they are put in ascending order, all of the differences between all pairs of...
-
Why do accountants need to consider behavioural factors when designing a management control system?
-
The preclosing trial balance of a Special Revenue Fund of Mesa County at the end of its 20X7 fiscal year is: The Advance to Enterprise Fund plus another $15,000 of the funds net assets are related to...
-
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales for Item Zeta9 are as follows: Oct. 1 Inventory 58 units @ $16 7 Sale 43 units 15 Purchase 64 units @ $18 24 Sale 21 units...
-
you completed a simple audit data analytic. Based on what you performed, document how you would plan, perform, and evaluate your analytic ?
-
What are the differences between auditing and accountancy?
-
A culture contains 1,300 bacteria. The bacteria grow to 2,000 in 10 hours. What is the rate at which the bacteria grow per hour to the nearest tenth of a percent?
-
William Green recently acquired the financial controlling interest of Importers and Wholesalers, Inc., importers and distributors of cutlery. In his review of the duties of employees, Mr. Green...
-
An initial investment of $20,000 grows at a rate of 9% for five years. What is its final value?
-
Western Meat Processing Company buys and processes livestock for sale to supermarkets. In connection with the examination of the company's financial statements, you have prepared the following notes...
-
-3.5 nC 5 cm . 10 nC P a. Calculate the electric potential at the center P of the equilateral triangle shown in the Figure above. Submit Answer Tries 0/20 b. How much work is needed to assemble this...
-
Name some of the various types of financial intermediaries described in the chapter and indicate the primary reason(s) each was created.
-
Journalize the following transactions for Nashua Manufacturing. (a) Purchased 6,000 units of raw materials on account for \($11,700\). The standard cost was \($12,000\). (b) Issued 5,600 units of raw...
-
Robin Ritz mamifactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch. 3,000 ounces of grape concentrate...
-
The following information was taken from the annual manufacturing overhead cost budget of Soo Tech Company. During the year, 4,000 units were produced, 16,100 hours were worked, and the actual...
Study smarter with the SolutionInn App