25 Jul HOW MUCH OF THE ACCOUNTING DEPARTMENT COSTS WILL BE ALLOCATED TO THE PRODUCTION?
Activi Show more Question 1: Maxx Inc. has provided the following data from its activity-based costing system: Activity Cost Pools Total Cost Total Activity Designing products $378300 6320 product design hours Setting up batches $52678 7366 batch set-ups Assembling products $25122 4018 assembly hours The activity rate for the designing products activity cost pool is: Question 2: Sasha Company allocates the estimated $198000 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and employees follows: Department Employees Accounting 4 Production 27 Sales 18 How much of the accounting department costs will be allocated to the production? Question 3: Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1) finishing (P2) and packaging (P3) departments. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet which the production department occupies within the factory. Information about the departments is presented below: Number of Number of Square Department Costs Employees Feet Occupied Payroll (S1) $146000 2 2000 Maintenance (S2) $220000 8 64000 Molding (P1) 69 100000 Finishing (P2) 48 60000 Packaging (P3) 16 40000 Medusa uses the direct method to allocate costs. Round all answers to the nearest dollar. What amount of the payroll department costs will be allocated to the molding department? Show less
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