Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) AC Corporation operates one central plant which has two divisions, Flashlight Division and the Night Light Division. Following data apply to coming budget year:

Budgeted costs of the operating the plant for 10,000 to 20,000 hours:

Fixed operating costs per year $240,000
Variable operating costs $10 per hour
Practical capacity 20,000 hours per year

Budgeted long-run usage per year:

Lamp Division 800 hours × 12 months = 9,600 hours per year
Flashlight Division 450 hours × 12 months = 5,400 hours per year

Suppose that practical capacity is utilized to compute allocation rates. Further suppose that actual usage of Lamp Division was 700 hours and Flashlight Division was 400 hours for month of June.

Required:

a. If single-rate cost-allocation method is utilized, compute amount of operating costs will be budgeted for Lamp Division each month? For Flashlight Division each month?

b. For month of June, if single-rate cost-allocation method isutilized , determine amount of cost will be assigned to Lamp Division? To Flashlight Division? Suppose actual usage is used to assign operating costs.

c. If dual-rate cost-allocation method is utilized, compute amount of operating costs will be budgeted for Lamp Division each month? For Flashlight Division each month?

d. For month of June, if dual-rate cost-allocation method is used, compute amount of cost will be allocated to  Lamp Division? To Flashlight Division? Suppose budgeted usage is utilized to assign fixed operating costs and actual usage is used to assign variable operating costs.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918055

Have any Question? 


Related Questions in Accounting Basics

Assignmentthis assignment has 2 parts 1000 10 word theory

Assignment This assignment has 2 parts, 1000 + 10% word theory interpretation essay and a response to a practical application of the theory. The assignment must be typed, use Arial font, 12, to avoid plagiarism, make sur ...

Account assignmentlets use this discussion to study bonds

Account Assignment Let's use this discussion to study bonds together. Assume the following information for a bond issue: ABC Company issues the bonds at a face value of $10,000.000 with a contractual (stated) interest ra ...

Question 1ryan withdrew cash from the business to pay his

Question 1 Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________. A. increase in both cash and withdrawal B. decrease in both cash and withd ...

Accounting essaywrite a 700- to 1050-word summary of the

Accounting Essay Write a 700- to 1,050-word summary of the team's discussion about IFRS versus GAAP, based on your team collaborative discussions. The summary should be structured in a subject-by-subject format. An intro ...

Reading concept summaryno plagiarism must be original

Reading Concept Summary **NO PLAGIARISM. MUST BE ORIGINAL. PLEASE USE REFERENCES IF NEEDED ** Write a 260- to 350-word summary of this week's readings. Please write about the following: Fixed Assets, Depreciation, and In ...

Questiona not-for-profit organization receives a restricted

Question: A not-for-profit organization receives a restricted gift. When, and in which type of fund, should it recognize the revenue? When, and in which type of fund, should it recognize the related expense? What is the ...

Task -task covers the application of conceptual and

Task - Task covers the application of conceptual and technical aspects of accounting and the preparation of business financial statements, the appraisal of the use of information technology including spreadsheet software ...

Please be sure to show all of your work and calculations1

Please be sure to show all of your work and calculations. 1. From the below information, calculate the final balance to be carried forward in your check stubs as of the end of October. Oct. 1 beginning balance $1,200.50 ...

Milestone three guidelinesoverview the final project for

Milestone Three Guidelines Overview: The final project for this course is the creation of a portfolio consisting of a report and spreadsheets. You will be placed in a real-world scenario in which you will take the role o ...

Royalty calculation problem setdaenerys owns a 38ths

Royalty Calculation Problem Set Daenerys owns a 3/8ths mineral interest in Section 8. The other 5/8ths are owned by Viserys. Daenerys and Viserys both enter into a lease with Westeros Oil and Gas on the AAPL form lease, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro