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Cost Allocation of Service Department Costs

Allocation of Automobile Costs

The motor pool of a major city provides automobiles for the use of various city departments. Currently, the motor pool has 50 autos. A recent study showed that it costs $4,800 of annual fixed cost per automobile plus $.20 per mile variable cost to own, operate, and maintain autos, such as those provided by the motor pool. Each m

Joint Costs for Skanda Corporation

Skanda Corporation manufactures two chemicals (Flextra and Hydro) in a joint process. Data from a recent month follow. Costs: Direct materials used $360,000 Direct labor $150,000 Manufacturing overhead $690,000 Manufacturing output: Flextra 40,000 gallons Hydro 120,000 gallons Flextra sells for $15 per gallon

Direct and Step Down Allocations

Please See Attachment. I have some of the answers but need help to complete. Please see directions highlighted in yellow on the spreadsheets. I need all columns highlighted in orange completed in full. Please help Chapter 12 Decision Guideline Dallas Cleaning Costs Allocations form Service Departmen

Pros and Cons of Incentives and Performance Measures

If a company wants to allocate Head Quarters administrative expenses to its consulting offices then what are the pros and cons for each of the following in terms of incentives, performance measures: Allocating expenses based on: 1. Professional staff compensation 2. supplies and offices expenses 3. profit contribution of

Direct and step-down methods with dual rates (Petro-X)

See *ATTACHED* file for complete details! Can you help me get started on this assignment? -------------------------------- Petro-X uses the direct method for allocating both fixed and variable costs from the physical plant and equipment maintenance support departments to operating departments X and Y. The bases for all

Direct and Step-Down Allocations

Butler Home Products has two producing departments, Machining and Assembly, and two service departments, Personnel and Custodial. The company's budget for April 20X7 is Service Departments Production Departments

Marvin Company: Allocation of Service Department Costs

Allocation of Service Department Costs Marvin Company has three service departments (S1, S2, S3) and two production departments (P1, P2). The following data relate to Marvin's allocation of service department costs: Budgeted Costs Number of Employees S1 $3,000,000 75 S2 2,000,000 50

Simulation Exercise - PDA

I need help in running the simulation as indicated below: Your first step is to come up with a strategy for how you will make these decisions. Access the simulation site ( We will be using the PDA Sim Read the introduction, and study the Financials and the Market Information. Review th

Elegant Decor Co: Analysis of possible elimination of a department

See pdf file attached. Question 2: Problem 10-6A: Analysis of possible elimination of a department L.O. C1, A1 Elegant Decor Company's management is trying to decide whether to eliminate Department 200, which has produced losses or low profits for several years. The company's 2008 departmental income statement shows the f

Measuring Outcomes

What criteria do you use to measure outcomes against? What if you only had enough resources for three projects and two had to wait for more resources to become available? How do you measure their outcomes? What do you do since your three criteria are competing rather than supporting criteria? For example, usually you cannot a

Total support costs allocation

Carleton Company has two service department and two production departments. Information on annual manufacturing support costs and cost drivers follows: Service Departments Production Departments Item S1 S2 P1 P2 Support costs $

Methods of Allocation

I have found that allocation of costs can be a very controversial subject when asking managers to control costs. I learned that some feel that the methods of allocation may be too arbitrary. If one were asked to design the "perfect" cost allocation methodology, where would one start? I am at a loss? What would be some of