5e sol07-08 - Dept. B 20,000 dlh x $0.25 $5,000 Fixed...

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Cost Management Hansen and Mowen Ex 7-8 Name: SOLUTION Enter the appropriate amounts in the shaded cells in columns J and L. Cost Driver Information Dept. A Dept B. Total Year 1 Expected direct labor hours 20,000 20,000 40,000 Fixed cost allocation ratios 50% 50% 100% Year 2 Expected direct labor hours 20,000 20,000 40,000 Fixed cost allocation ratios 50% 50% 100% Enter the appropriate amounts in the shaded cells in columns F and H. 1) Product Costing Allocation Human Resources Dept. Producing Departments Year 1 Dept. A Dept B. Total Allocation to producing departments Variable costs: Dept. A 20,000 dlh x $0.25 $5,000 Dept. B 20,000 dlh x $0.25 $5,000 Fixed costs: Dept. A $100,000 x 50% $50,000 Dept. B $100,000 x 50% $50,000 Total $55,000 $55,000 $110,000 Product Costing Allocation Human Resouces Dept. Producing Departments Year 2 Dept. A Dept B. Total Allocation to producing departments Variable costs: Dept. A 20,000 dlh x $0.25 $5,000
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Unformatted text preview: Dept. B 20,000 dlh x $0.25 $5,000 Fixed costs: Dept. A $100,000 x 50% $50,000 Dept. B $100,000 x 50% $50,000 Total $55,000 $55,000 $110,000 2) Performance Evaluation Allocation Human Resources Dept. Producing Departments Year 1 Dept. A Dept B. Total Allocation to producing departments Variable costs: Dept. A 24,000 dlh x $0.25 $6,000 Dept. B 36,000 dlh x $0.25 $9,000 Fixed costs: Dept. A $100,000 x 50% $50,000 Dept. B $100,000 x 50% $50,000 Total $56,000 $59,000 $115,000 Performance Evaluation Allocation Human Resources Dept. Producing Departments Year 2 Dept. A Dept B. Total Allocation to producing departments Variable costs: Dept. A 25,000 dlh x $0.25 $6,250 Dept. B 25,000 dlh x $0.25 $6,250 Fixed costs: Dept. A $100,000 x 50% $50,000 Cost Management Hansen and Mowen Dept. B $100,000 x 50% $50,000 Total $56,250 $56,250 $112,500...
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5e sol07-08 - Dept. B 20,000 dlh x $0.25 $5,000 Fixed...

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