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Student Name:
Class:
Administration Accounting Maintenance Molding Painting
10,000 30,000 20,000 360,000 90,000
6.00$ 120.00$ 17.50$ 312.00$ 162.00$
Maintenance Accounting Administration Molding Painting
200,000$ 400,000$ 250,000$ 687,500$ 485,000$
Correct!
Molding Painting
237,500$ 210,000$
Part c. Unit cost of allocated service department costs
Part b.
Direct Costs
Direct materials
FROM:
Round allocations to the nearest dollar.
To
Instructor
McGraw-Hill/Irwin
Problem 11-48
MODEL, INC.
Proportion Used By
Building area
Equipment value (in 000's)
Allocation Base
Part a.
Administration Accounting Maintenance Molding Painting
250,000$
Used by
Additional Information:
Administration department cost
MODEL, INC.
Given Data P11-48:
Allocation base
Allocation base use:
Student Name:
Class:
Administration
Accounting Domestic International
-25 45 180
25,000 - 20,000 80,000
360,000$ 144,000$ 936,000$ 3,600,000$
Administration
Accounting Domestic International
Administration
Accounting Domestic International
360,000 144,000 936,000 3,600,000
Substitute Accounting costs into the equation for Administration and solve in the
shaded area below. Round the final answer to the nearest dollar.
Substitute the computed total Administration costs into the equation for Accounting and
solve as before. Round the final answer to the nearest dollar.
S2 = 144,000 + .10 (360,000 +.2 S2)
S1 = 360,000 + (.2 x 183,673)
The equations set up:
Part c. Reciprocal Method
Part b. Step Method
Part a. Direct Method
Transactions
Department direct costs
Instructor
McGraw-Hill/Irwin
Problem 11-49
BLUSTAR COMPANY
Department costs
Employees
Administration
Accounting Domestic International
BLUSTAR COMPANY
Given Data P11-49:
Summary of operations:
Student Name:
Class:
Steam Fixed Variable Equipment
Generation Costs Costs Maintenance Alpha Beta
- - 0.40 - 0.10 0.50
Let: S1 = Steam generation
S2 = Electric generating - fixed
S3 = Electric generating - variable
S4 = Equipment maintenance
P1 = Alpha
P2 = Beta
Amount to
Be Allocated S4 S2 S3 P1 P2
Amount
174,000$
From:
Forgone steam sales
Part c.
Instructor
McGraw-Hill/Irwin
Problem 11-52
STEAMCO CORPORATION
tenth of a thousand (one decimal place).
Note: All numbers used in this problem are in thousands. Round all allocations to the nearest
Services Used by
To Department:
Cost source
Steam Generation
Service Department
Part b.
Steam Fixed Variable Equipment
Generation Costs Costs Maintenance Alpha Beta
- - 0.40 - 0.10 0.50
Direct
Cost
90,000
240,000
Electric Generating:
Department
Fixed costs (S2)
Variable costs (S3)
Direct departmental costs:
Services Used by
STEAMCO CORPORATION
Given Data P11-52:
Steam Generation
Service Department
Summary of services used:
