Questions from Cost Accounting

Q: Hildale Manufacturing is organized with two service departments (Administration and Maintenance

Hildale Manufacturing is organized with two service departments (Administration and Maintenance) and two production departments (Assembly and Finishing). The company uses the step method to allocate s...

Q: Baldwin Enterprises has two service departments, Personnel and Legal, and

Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allo...

Q: Rohns Manufacturing produces kitchen appliances at its North Roberts plant. The

Rohns Manufacturing produces kitchen appliances at its North Roberts plant. The appliances go through two production departments: Fabrication and Assembly. The plant has three service departments: Inf...

Q: Bradby Automotive Restoration (BAR) has three service departments (S1

Bradby Automotive Restoration (BAR) has three service departments (S1, S2, and S3) and two operating departments (P1 and P2). Data on departmental usage of service departments follow: The direct costs...

Q: Louisiana Metals uses a job costing system. The company applies manufacturing

Louisiana Metals uses a job costing system. The company applies manufacturing overhead using a predetermined rate based on direct labor cost. The following debits (credits) appeared in the Workin- Pro...

Q: Kenmore Fabrication estimated that direct labor cost for the year would be

Kenmore Fabrication estimated that direct labor cost for the year would be $640,000. The company also estimated that fixed overhead would be $480,000 and variable overhead would be 35 percent of direc...

Q: Kingsley Products estimated that direct labor for the year would be 64

Kingsley Products estimated that direct labor for the year would be 64,000 hours. The company also estimated that the fixed overhead cost for the year would be $160,000. They further estimated the var...

Q: What are the similarities and differences among the direct method, the

What are the similarities and differences among the direct method, the step method, and the reciprocal method of allocating costs?

Q: What criterion should be used to determine the order of allocation from

What criterion should be used to determine the order of allocation from service departments when the step method is used? Explain why.

Q: What is the objective of joint cost allocation?

What is the objective of joint cost allocation?