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Nicabrew has two production departments that each produce one beverage: pinolillo and cacao. The maintenance department is a support department that provides services to both production departments. Support department costs are allocated to Pinolillo and Cacao departments on the basis of support department hours. The maintenance department has fixed costs of $212,000. In addition, the maintenance department incurs a rate of $28 per hour in variable costs. Budgeted and actual maintenance department hours in each production department are as follows: Production Department Pinolillo Cacao Total Required: Budgeted Hours Actual Hours 2,500 1,500 3,000 1,600 4,000 4,600 Question a1. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? a2. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? b1. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? b2. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage? c1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? c2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? d1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? d2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage? Answer $ 202,500.00 $ 121,500.00

Nicabrew has two production departments that each produce one beverage: pinolillo and cacao. The maintenance department is a support department that provides services to both production departments. Support department costs are allocated to Pinolillo and Cacao departments on the basis of support department hours. The maintenance department has fixed costs of $212,000. In addition, the maintenance department incurs a rate of $28 per hour in variable costs. Budgeted and actual maintenance department hours in each production department are as follows: Production Department Pinolillo Cacao Total Required: Budgeted Hours Actual Hours 2,500 1,500 3,000 1,600 4,000 4,600 Question a1. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? a2. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? b1. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? b2. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage? c1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? c2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? d1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? d2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage? Answer $ 202,500.00 $ 121,500.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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PR 6-1 (Algo) (LO 6.1, 6.2) Nicabrew has two production departments... Nicabrew has two production departments that each produce one beverage: pinolillo and cacao. The maintenance department is a support department that provides services to both production departments. Support department costs are allocated to Pinolillo and Cacao departments on the basis of support department hours. The maintenance department has fixed costs of $212,000. In addition, the maintenance department incurs a rate of $28 per hour in variable costs. Budgeted and actual maintenance department hours in each production department are as follows: Production Department Pinolillo S Cacao Total Required: Budgeted Hours Actual Hours 2,500 1,500 3,000 1,600 4,000 4,600 Question Answer a1. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? $ 202,500.00 a2. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? $ 121,500.00 b1. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? b2. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage? c1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? c2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? d1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? d2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage?
Transcribed Image Text:PR 6-1 (Algo) (LO 6.1, 6.2) Nicabrew has two production departments... Nicabrew has two production departments that each produce one beverage: pinolillo and cacao. The maintenance department is a support department that provides services to both production departments. Support department costs are allocated to Pinolillo and Cacao departments on the basis of support department hours. The maintenance department has fixed costs of $212,000. In addition, the maintenance department incurs a rate of $28 per hour in variable costs. Budgeted and actual maintenance department hours in each production department are as follows: Production Department Pinolillo S Cacao Total Required: Budgeted Hours Actual Hours 2,500 1,500 3,000 1,600 4,000 4,600 Question Answer a1. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? $ 202,500.00 a2. If a single-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? $ 121,500.00 b1. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? b2. If a single-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage? c1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Pinolillo? c2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be budgeted for Cacao? d1. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Pinolillo based on actual usage? d2. If a dual-rate cost allocation method is used, what amount of maintenance cost will be allocated to Cacao based on actual usage?
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