Franklin Co. has three departments: purchasing, human resources, and assembly. In a recent month the three departments incurred two shared indirect expenses. The amounts of the indirect expenses and the bases used to allocate them follow. Use this information to allocate each of the two indirect expenses across the three departments using the tables provided below.Indirect ExpenseCostAllocation BaseSupervision$85,000Number of employeesUtilities and Insurance38,000Square feet occupiedTotal123,000?Departmental data for the company's recent reporting period follow.DepartmentEmployeesSquare FeetPurchasing1015,000Human Resources610,000Assembly2025,000Total3650,000Supervision???Purchasing???Human Resources???Assembly???Total???Utilities and
Insurance???Purchasing???Human Resources???Assembly???Total???
What will be an ideal response?
| Department | Employees | % of Total | Cost |
| Purchasing | 10 | 27.8% | $23,630 |
| Human Resources | 6 | 16.7% | 14,195 |
| Assembly | 20 | 55.5% | 47,175 |
| Total | 36 | 100.0% | $85,000 |
| Department | Square Feet | % of Total | Cost |
| Purchasing | 15,000 | 30% | $11,400 |
| Human Resources | 10,000 | 20% | 7,600 |
| Assembly | 25,000 | 50% | 19,000 |
| Total | 50,000 | 100% | $38,000 |
You might also like to view...
If a company overstates its ending inventory for the current year, what are the effects on cost of goods sold and net income for the current year? Effect on Cost of Goods Sold Effect on Net Income
a. Understated Overstated b. Overstated No effect c. Understated Understated d. Overstated Overstated
A firm may retire an asset from service by trading it in on a new asset. U.S. GAAP and IFRS require that firms record a trade-in that lacks commercial substance at
a. present value of future cash flows. b. replacement value. c. liquidation value. d. the carrying value of the exchanged asset. e. undiscounted cash flows.
Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel's beginning and ending Work in Process Inventory are $15,500 and $27,000 respectively. Compute the cost of jobs transferred to Finished Goods Inventory.
A. $440,000. B. $415,000. C. $428,500. D. $413,000. E. $558,500.
Which of the following statements is true of a testator's signature on a will?
A) The testator's signature must be obtained in the presence of the sole beneficiary as the principal witness. B) The will need not be signed by the testator if it is already attested by witnesses. C) The use of nicknames and honorary titles while signing a will render it unenforceable and invalid. D) The testator's signature must appear at the end of the will to prevent chances of any fraud.