Ex 7-18 Name:
Enter the appropriate amounts in the shaded cells in columns I and K.
1) Cost Driver Information Dept. A Dept B. Total
Year 1
Actual direct labor hours
Cost allocation ratios
Year 2
Actual direct labor hours
Cost allocation ratios
Enter the appropriate amounts in the shaded cells in column G.
Allocation Human Resources Dept. Producing Departments
Year 1 Dept. A Dept B. Total
Actual Human Resources Costs
Allocation to producing departments
Dept. A x
Dept. B x
Total
Allocation Human Resources Dept. Producing Departments
Year 2 Dept. A Dept B. Total
Actual Human Resources Costs
Allocation to producing departments
Dept. A x
Dept. B x
Total
Ex 7-18 Name: SOLUTION
Enter the appropriate amounts in the shaded cells in columns I and K.
1) Cost Driver Information Dept. A Dept B. Total
Year 1
Actual direct labor hours 24,000 36,000 60,000
Cost allocation ratios 40% 60% 100%
Enter the appropriate amounts in the shaded cells in column G.
Allocation Human Resources Dept. Producing Departments
Year 1 Dept. A Dept B. Total
Actual Human Resources Costs 120,000$
Allocation Human Resources Dept. Producing Departments
Year 2 Dept. A Dept B. Total
Actual Human Resources Costs 120,000$
Allocation to producing departments
Ex 7-19 Name:
Enter the appropriate amounts in the shaded cells in columns J and L.
Cost Driver Information Dept. A Dept B. Total
Year 1
Expected direct labor hours
Fixed cost allocation ratios
Year 2
Expected direct labor hours
Fixed cost allocation ratios
Enter the appropriate amounts in the shaded cells in columns F and H.
1) Product Costing Allocation
Human Resources Dept.
Producing Departments
Year 1 Dept. A Dept B. Total
Allocation to producing departments
Variable costs:
Dept. A dlh x
Dept. B dlh x
Fixed costs:
Dept. A x
Dept. B x
Total
Product Costing Allocation Human Resouces Dept. Producing Departments
Year 2 Dept. A Dept B. Total
Allocation to producing departments
Variable costs:
Dept. A dlh x
Dept. B dlh x
Fixed costs:
Dept. A x
Dept. B x
Total
2) Performance Evaluation Allocation
Human Resources Dept.
Producing Departments
Year 1 Dept. A Dept B. Total
Allocation to producing departments
Variable costs:
Dept. A dlh x
Dept. B dlh x
Fixed costs:
Dept. A x
Dept. B x
Total
Performance Evaluation Allocation
Human Resources Dept.
Producing Departments
Year 2 Dept. A Dept B. Total
Allocation to producing departments
Variable costs:
Dept. A dlh x
Dept. B dlh x
Fixed costs:
Dept. A x
Dept. B x
Total
Ex 7-19 Name:
Enter the appropriate amounts in the shaded cells in columns J and L.
Cost Driver Information Dept. A Dept B. Total
Year 1
Expected direct labor hours 20,000 20,000 40,000
Fixed cost allocation ratios 50% 50% 100%
Enter the appropriate amounts in the shaded cells in columns F and H.
1) Product Costing Allocation
Human Resources Dept.
Producing Departments
Year 1 Dept. A Dept B. Total
Allocation to producing departments
Variable costs:
Dept. A 20,000 dlh x 0.25$ 5,000$
Dept. B 20,000 dlh x 0.25$ 5,000$
Fixed costs:
Product Costing Allocation Human Resouces Dept. Producing Departments
Year 2 Dept. A Dept B. Total
Allocation to producing departments
Variable costs:
Dept. A 20,000 dlh x 0.25$ 5,000$
Dept. B 20,000 dlh x 0.25$ 5,000$
2) Performance Evaluation Allocation
Human Resources Dept.
Producing Departments
Year 1 Dept. A Dept B. Total
Allocation to producing departments
Variable costs:
Dept. A 24,000 dlh x 0.25$ 6,000$
Dept. B 36,000 dlh x 0.25$ 9,000$
Fixed costs:
Performance Evaluation Allocation
Human Resources Dept.
Producing Departments
Year 2 Dept. A Dept B. Total
Allocation to producing departments
Variable costs:
Dept. A 25,000 dlh x 0.25$ 6,250$
SOLUTION
Ex 7-20 Name:
Enter the appropriate amounts in the shaded cells in columns J and L.
1) Cost Driver Information and Allocation Ratios Pesticide Liquid Fertilizer Total
Power:
Machine hours
Cost allocation ratios
General factory:
Square feet
Cost allocation ratios
Purchasing
Purchase orders
Cost allocation ratios
Enter the appropriate amounts in the shaded cells in columns F, H, J, and L.
Allocation Producing Departments
Direct Method dollars x ratio Pesticide Liquid Fertilizer Total
Power:
Pesticide x
Liquid Fertilizer x
General factory:
Pesticide x
Liquid Fertilizer x
Purchasing
Pesticide x
Liquid Fertilizer x
Direct costs
Total
2) Departmental overhead rates Pesticide Liquid Fertilizer
Total overhead
Machine hours
Overhead rate per machine hour
Ex 7-20 Name:
Enter the appropriate amounts in the shaded cells in columns J and L.
1) Cost Driver Information and Allocation Ratios Pesticide Liquid Fertilizer Total
Power:
Machine hours 24,000 8,000 32,000
Cost allocation ratios 75.0% 25.0% 100%
Enter the appropriate amounts in the shaded cells in columns F, H, J, and L.
Allocation Producing Departments
Direct Method dollars x ratio Pesticide Liquid Fertilizer Total
Power:
Pesticide 90,000$ x 75.00% 67,500$
Liquid Fertilizer 90,000$ x 25.00% 22,500$
2) Departmental overhead rates Pesticide Liquid Fertilizer
Total overhead 404,377$ 353,323$
SOLUTION
Ex 7-21 Name:
Enter the appropriate amounts in the shaded cells in columns E, G, I, and K.
1) Cost Driver Information and Allocation Ratios
General
Power Factory Purchasing Pesticide Liquid Fertilizer Total
General factory:
Square feet –
Cost allocation ratios
Purchasing
Purchase Orders – –
Cost allocation ratios
Power:
Machine hours
Cost allocation ratios
Enter the appropriate amounts in the shaded cells in columns E, G, I, K, M, O, and R.
Allocation Support Departments Producing Departments
Direct Method dollars x ratio Power Gen. Factory Purchasing Pesticide Liquid Fertilizer Total
Direct costs 90,000$ 314,000$ 167,000$ 78,900$ 107,800$
General factory:
Power x
Purchasing x
Pesticide x
Liquid Fertilizer x
Subtotal
Purchasing
Power x
Pesticide x
Liquid Fertilizer x
Subtotal
Power:
Pesticide x
Liquid Fertilizer x
Total
2) Departmental overhead rates Pesticide Liquid Fertilizer
Total overhead
Machine hours
Overhead rate per machine hour
Ex 7-21 Name:
Enter the appropriate amounts in the shaded cells in columns E, G, I, and K.
1) Cost Driver Information and Allocation Ratios
General
Power Factory Purchasing Pesticide Liquid Fertilizer Total
General factory:
Square feet 1,500 – 1,500 4,200 4,800 12,000
Cost allocation ratios 12.50% 12.50% 35.00% 40.00% 100%
Purchasing
Enter the appropriate amounts in the shaded cells in columns E, G, I, K, M, O, and R.
Allocation Support Departments Producing Departments
Direct Method dollars x ratio Power Gen. Factory Purchasing Pesticide Liquid Fertilizer Total
Direct costs 90,000$ 314,000$ 167,000$ 78,900$ 107,800$
General factory:
Power 314,000$ x 12.50% 39,250 (39,250)
Purchasing 314,000$ x 12.50% (39,250) 39,250
Subtotal
Purchasing
SOLUTION
Prob 7-34 Name:
Enter the appropriate amounts in the shaded cells in columns C, E, G, and I.
1) Allocation ratios for fixed costs
SLC Reno Portland Total
Hours of flight time
No. of passengers
Variable rates: Maintenance Baggage
Expected cost
Activity level
Allocation based on budgeted activity
Maintenance — fixed:
Cost:
Ratio:
Maintenance — var.:
Rate:
Flight hrs.
Baggage — fixed:
Cost:
Ratio:
Baggage — var.:
Rate:
Passengers
2) Allocation based on actual activity
Maintenance — fixed:
Cost:
Ratio:
Maintenance — var.:
Rate:
Flight hrs.
Baggage — fixed:
Cost:
Ratio:
Baggage — var.:
Rate:
Passengers
SLC
Reno
Portland
SLC
Reno
Portland
=
=
Prob 7-34 Name:
Enter the appropriate amounts in the shaded cells in columns C, E, G, and I.
1) Allocation ratios for fixed costs
SLC Reno Portland Total
Hours of flight time 2,000 4,000 2,000 8,000
25.00% 50.00% 25.00% 100.00%
Allocation based on budgeted activity
Maintenance — fixed:
Cost: $240,000 $60,000 $120,000 $60,000
Ratio: 25.00% 50.00% 25.00%
Maintenance — var.:
Rate: $3.75 7,500 15,000 7,500
2) Allocation based on actual activity
Maintenance — fixed:
Cost: $240,000 $60,000 $120,000 $60,000
Ratio: 25.00% 50.00% 25.00%
Maintenance — var.:
Rate: $3.75 6,750 15,750 9,375
SLC
Reno
Portland
SOLUTION
SLC
Reno
Portland