Which of the following bases is the most appropriate for the appointment of rent and rates expenses? Relative floor area of departments Number of employees in the department Technical estimation Horsepower rating ratio
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Which of the following bases is the most appropriate for the appointment of rent and rates expenses? Relative floor area of departments Number of employees in the department Technical estimation Horsepower rating ratio
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- For each of the following expenses, select the best allocation basis. A. Value of insured assets. B. Square feet of space occupied. C. Proportion of total purchase orders for each operating department. D. Number of employees in department. Maintenance department expenses of the operating departments. Payroll department expenses of all departments. Purchasing department expenses for the operating departments. Insurance expenses of all departments.Direct expenses are assigned to departments based on a.estimated expenses. b.actual expenses. c.the percentage of gross sales represented by each department. d.the percentage of total net sales represented by each department.Required: Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments’ costs to the operating departments based on the step-down method.
- Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments’ costs to the operating departments based on the step-down method.Suggest a reasonable basis for allocating thefollowing indirect expenses to departments: janitorial servicesHow much is the net operating income contributed to the company by Department A and B? Using the data above, what is the segment margin of Department A and B?
- The order in which the costs of service departments are allocated will affect the amounts allocated to an operating department when the direct method is used. True or False True FalseHow does management determine the order in which support department costs are allocated under the sequential method?Departmental direct operating margin is the difference between a departments gross profit and its direct operating expenses.
- Which of the following is a variables cost? A) rent B)loan interest rate C)salesperson’s commissioner D)salarywhich of the following items does accounts receivable include a. money paid for labor and received for services b. accounts receivable aging report c. state unemployment insurance d. overhead should include costs directly associated with a particular project, such a material and specific projects payrollQ. Allocate the service department costs to the two operating departments using(i) the step-down method (Allocate Administrative Services first)(ii) the step-down method (Allocate Maintenance Services first)
