Vines Company is a manufacturer of women's and men's swimsuits. The company uses a dual-rate system to allocate support

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Vines Company is a manufacturer of women's and men's swimsuits. The company uses a dual-rate system to allocate support

Post by answerhappygod »

Vines Company Is A Manufacturer Of Women S And Men S Swimsuits The Company Uses A Dual Rate System To Allocate Support 1
Vines Company Is A Manufacturer Of Women S And Men S Swimsuits The Company Uses A Dual Rate System To Allocate Support 1 (63 KiB) Viewed 9 times
Use the following allocation bases for fixed support costs:direct costs for accounting, number of employees for humanresources, and square metres for janitorial.
Please allocate fixed support costs using "the reciprocalmethod"
It's better if you could follow this template and explain howyou came up with the numbers
Support Departments
Operating Departments
Accounting
Human Resources
Janitorial
Women’s
Men’s
Total
Allocation bases
Step 1: Employees
% of Allocation
Step 2:
Square metres
% of Allocation
Step 3:
Direct costs
% of Allocation
Fixed
support costs
Allocations:
Step 1:
Human resources
Step 2:
Janitorial
Step 3: Accounting
Total Allocations
Vines Company is a manufacturer of women's and men's swimsuits. The company uses a dual-rate system to allocate support costs. Last year's support departments' fixed and variable costs are as follows: Variable costs Fixed costs Total cost Accounting $18,420 $55,260 $73,680 Employees Time spent for accounting Time spent cleaning Square metres Direct costs Allocation base amounts for all the departments are as follows: Human Resources Accounting Human Resources $22,104 $100,696 $122,800 2 15% 5% 80 $73,680 2 10% 10% 100 $122,800 Janitorial $60,360 $60,360 $120,720 Total $100,884 $216,316 $317,200 Janitorial Women's 10 Men's 4 6 20% 30% 25% 15% 30% 40% 120 500 500 $120,720 $800,000 $500,000 Total 24 100% 100% 1,300 $1,617,200
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply