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    kamilmahasneh's Avatar
    kamilmahasneh Posts: 2, Reputation: 1
    New Member
     
    #1

    Feb 17, 2010, 11:11 PM
    Managerial Accounting
    The city of Clare leases a photocopy machine, which it uses in its Copy Services Department for $2,500 per month plus 4¢ per copy made. In addition to the lease costs, operating costs for toner, paper, operator salaries, and so on are variable at 7¢/copy. All departments of the city combined estimated that they would make a total of 50,000 copies per month. The Parks and Recreation Department estimated that they would make 10,000 copies per month on average. In June, the Parks and Recreation Department made 12,000 copies and the total number of copies made by Copy Services for the month were 58,000.

    29. Following the guidelines of allocating variable- and fixed-costs of service departments separately, the variable costs of the Copy Services Department that should be allocated to the Parks and Recreation Department in June are


    Following the guidelines of allocating variable- and fixed-costs of service departments separately, the fixed costs of the Copy Services Department that should be allocated to the Parks and Recreation Department in June are



    Use the following information for questions 32 and 33.

    Cruise Industries has four categories of overhead. The four categories and expected overhead costs for each category for next year are:

    Inspection $ 30,000
    Maintenance 60,000
    Materials Handling 9,000
    Setups 8,000

    Currently overhead is applied using a predetermined overhead rate based upon budgeted direct labor hours, and 20,000 direct labor hours are budgeted for next year.
    The company has been asked to submit a bid for a proposed job. The company bases its bids on full manufacturing costs. Estimates for the proposed job are as follows:

    Direct materials $ 2,000
    Direct labor (400 hours) 4,000

    Number of material moves 10 Number of inspections 2
    Number of setups 5 Number of machine hours 40

    In the past, full manufacturing cost has been calculated by allocating overhead using a volume-based cost driver, direct labor hours. Expected activity for the four activity-based cost drivers that would be used are:

    Machine hours 5,000 Material moves 600
    Setups 200 Quality inspections 1,000

    32. If direct labor hours are used as the cost driver, the total cost of the proposed job would be
    kamilmahasneh's Avatar
    kamilmahasneh Posts: 2, Reputation: 1
    New Member
     
    #2

    Feb 17, 2010, 11:14 PM

    Cost Allocation , Job Costing and Process Costing System
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
     
    #3

    Feb 17, 2010, 11:34 PM
    Thank you for taking the time to copy your homework to AMHD.
    Please refer to this announcement: https://www.askmehelpdesk.com/financ...-b-u-font.html

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