Service Department Charges The centralized employee Travel Department of Vital Company has expenses of $414,700. The department has serviced a total of 14,300 travel reservations for the period. The South Division has made 7,722 reservations during the period, and the West Division has made 6,578 reservations. How much should each division be charged for travel services? Do not round interim calculations. South Division $ West Division $

Q: The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the…

A: The cost of production include variable and fixed cost.

Q: XYZ Company's customer service department follows up on customer complaints by telephone inquiry.…

A: Answer: Total no. of calls = 7,000 Total cost incurred on such calls = $203,000 No. of calls for…

Q: Woh Che Co. has four departments: materials, personnel, manufacturing, and packaging. In a recent…

A: Based on the given information allocate the indirect expenses to each of the department.Allocation…

Q: The following cost data pertain to the operations of Quinonez Department Stores, Inc., for the month…

A: Departmental direct cost means the cost that exclusively related with specific department and will…

Q: The centralized employee travel department of Croce Company has expenses of $724,000. The department…

A:

Q: Pitt Jones Company had the following activities, allocated costs, and allocation bases: Activities…

A: SOLUTION- ACTIVITY BASED COSTING- IT IS A METHOD OF ALLOCATING INDIRECT COSTS TO UNIT PRODUCT…

Q: Profit Center Responsibility Reporting Championship Sports Inc. operates two divisions—the Winter…

A: a)                                                Championship Sports Inc.…

Q: Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized…

A: Requirement 1:

Q: In divisional income statements prepared for Iguana Construction Company, the Payroll Department…

A: 1. Calculation of total payroll checks issued during the year : Particulars  Residential…

Q: Service Department Charges The centralized computer technology department of Hardy Company has…

A: Expenses between divisions in a company or organization are allocated based on the usage of related…

Q: Support Department Allocations The centralized computer technology department of Hardy Company has…

A: Expenses would be allocated in proportion Time spent on each division.

Q: Green Co. has three production departments Fern, Forest, and Moss and one service department Shade.…

A: Given:  Planned overhead costs Overhead Amount Allocated Overheads 40,500 Supervision…

Q: The centralized employee travel department of Bourgeois Company has costs of $405,600. The…

A: Cost per reservation = Total costs / Total no. of reservations = $405600/3900 = $104 per reservation

Q: The centralized travel department of Bour Company has costs of $40,560. The department has serviced…

A: Travel service cost will be charged to both the divisions proportionally. Total cost will be divided…

Q: Cost Department Allocations In divisional income statements prepared for Demopolis Company, the…

A: Total Support department allocations=Payroll Department allocations+Purchasing Department…

Q: XYZ Company's customer service department follows up on customer complaints by telephone inquiry.…

A: Cost allocation is the method of recognizing, amassing, and relegating costs to cost objects. A cost…

Q: XYZ Company's customer service department follows up on customer complaints by telephone inquiry.…

A: Calls for retail department=Total-Marketing department calls=7,000-2,940=4,060

Q: Athletic Apparel and Sports Supplies are departments of World of Sports. Sheila manages both…

A: Operating income is a company's profit after subtracting operating expenses, which are costs of…

Q: Black Sheep Printing has 35 employees distributed among the following departments:         Sales:…

A: Payroll is defined as the total of mandatory compensation payable to the employees of an entity for…

Q: The centralized computer technology department of Hardy Company has expenses of $320,000. The…

A: Here  allocation is based on hours used by each  department

Q: The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the…

A: Direct costs: The costs which are directly attributable to a product or service or a cost object.…

Q: labor distribution based on equal distribution among the departments.

A: Computation of labor distribution among the following departments is enumerated below :

Q: Karen Co. has four departments: Materials, Personnel, Manufacturing, and Packaging. In a recent…

A: Indirect expenses are the expenses that are incurred to run a business. The indirect expenses may be…

Q: ervice Department Charges The centralized computer technology department of Hardy Company has…

A: Hardy Company Computer Technology Dept. expenses to be apportioned to Retail Division and Commercial…

Q: Support Department Allocations The centralized computer technology department of Hardy Company has…

A: The expenses incurred by centralised department are to be allocated to different division of…

Q: he centralized employee travel department of Bourgeois Company has costs of $405,600. The department…

A: Travel reservations=South+West=2260+1640=3900

Q: The loan department of a Bank performs several functions in addition to home loan application…

A: ANSWER Here the question is asked to determine the cost of home loan application department. The…

Q: The Ferre Publishing Company has three service departments and two operating departments. Selected…

A: SOLUTION OVERHEAD REFERS TO THE ONGOING BUSINESS EXPENSES NOT DIRECTLY ATTRIBUTED TO CREATING A…

Q: Solexx Corporation allocates its service department overhead costs to producing departments. This…

A: Overhead costs incurred ( Maintenance ) = $ 270000 Overhead costs incurred ( Utilities ) = $ 648000

Q: Gomez Company has two service departments (Personnel and Office) and two operating departments…

A: Utilities expense are allocated on the basis of floor space

Q: Cost Department Allocations In divisional income statements prepared for Demopolis Company, the…

A: Payroll department Expense = $ 29792  Purchasing Department Expense = $ 15370

Q: A company has two departments, Y and Z that incur delivery expenses. An analysis of the total…

A: The indirect delivery expense shall be distributed between the departments on the basis of…

Q: Service Department Charges: Anibo Aviation Services has two operating divisions - Airframe Division…

A: All the costs of the snack bars is to be allocated between the divisions on the basis of number of…

Q: The operations vice president of Security Home Bank has been interested in investigating the…

A:

Q: The centralized computer technology department of Crutchfield Company has costs of $982,500. The…

A:

Q: One of the operations in the United States Postal Service IS rate of 1.5 letters per second. The…

A:

Q: Glades Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports…

A:

Q: The centralized computer technology department of Lee Company has expenses of $264,000. The…

A: Computer expense per hour = Computer expense/total hours            = $264,000/2,500            =…

Q: Munoz Air is a large airline company that pays a customer relations representative $15,975 per…

A: Calculation of total cost of processing customer complaints in January and in February as follows…

Q: Campbell Air is a large airline company that pays a customer relations representative $13,475 per…

A: Total cost = Cost per month * 12 Total cost = $13,475 * 12 Total cost = $161,700…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.