Chapter_22A_Solutions_7e

# Chapter_22A_Solutions_7e - Chapter 22 Appendix The Master...

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Unformatted text preview: Chapter 22 Appendix The Master Budget and Responsibility Accounting √ Appendix Short Exercises (5 min.) S 22A-33 g 1. Photocopying Department costs e 2. Maintenance Department costs c 3. Receiving Department costs d 4. Customer Service Department costs b 5. Purchasing Department costs a 6. Material handling costs h 7. Personnel Department costs i 8. Building rent and utilities f 9. Newspaper advertising costs Chapter 22 The Master Budget and Responsibility Accounting 211 (5 min.) S 22A-34 HomePC Rent Expense Allocation Rent for the entire store \$ 900,000 ÷ Total square feet (20,000 + 10,000) ÷ 30,000 Rent per square foot \$30 / sq. ft. Hardware Department: 20,000 square feet × \$30 / square foot = \$600,000 Software Department: 10,000 square feet × \$30 / square foot = 300,000 Total rent expense…………………………………… \$900,000 Accounting 7/e Solutions Manual 212 √ Appendix Exercises (15-20 min.) E 22A-35 Req. 1 Indirect labor cost: Cost per hour = \$24,000 500 + 700 + 300 = \$16 / hour Priming: 500 hours × \$16 / hour……… \$ 8,000 Welding: 700 hours × \$16 / hour……… 11,200 Custom orders: 300 hours × \$16 / hour……… 4,800 Total indirect labor cost…………………………….. \$24,000 Equipment depreciation cost: Cost per machine hour = \$24,000 550 + 525 + 125 = \$20 / machine hour Priming: 550 hours × \$20 / hour……… \$11,000 Welding: 525 hours × \$20 / hour……… 10,500 Custom orders: 125 hours × \$20 / hour……… 2,500 Total equipment depreciation cost……………….. \$24,000 Chapter 22 The Master Budget and Responsibility Accounting 213 (continued)...
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## This note was uploaded on 05/05/2010 for the course BUSINESS 71395 taught by Professor Brown during the Spring '09 term at Miss. College.

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Chapter_22A_Solutions_7e - Chapter 22 Appendix The Master...

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