At the spring valley company the cost of the

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Managerial Accounting
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Chapter 5 / Exercise EX5-2
Managerial Accounting
Warren/Tayler
Expert Verified
8) At the Spring Valley Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.Total personnel department costs are $299,000.DepartmentABCNumber of employees80280225Number of new hires151716If the number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)A) $41,860B) $7,085C) $143,111D) $44,874Answer: Explanation: 80 / (80 + 280 + 225) = 0.140.14 x $299,000 = $41,860
A
Diff: 2Objective: 3AACSB: Application of knowledge
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Managerial Accounting
The document you are viewing contains questions related to this textbook.
Chapter 5 / Exercise EX5-2
Managerial Accounting
Warren/Tayler
Expert Verified
9) At the Spring Valley Company Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.Total personnel department costs are $282,000.DepartmentABCNumber of employees90280210Number of new hires151211If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)
C
Diff: 2Objective: 3AACSB: Application of knowledge10) At the Spring Valley Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.Total personnel department costs are $298,000.DepartmentABCNumber of employees50285200Number of new hires301312Which cost estimation method is being used by Spring Valley Company?
BDiff: 3Objective: 3AACSB: Analytical thinking
11) At the Wild Cat Group Company, the cost of the library and information center has always been charged to the various departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs.Total library and information center costs are $202,000.DepartmentABCNumber of employees175525140Number of engineers58535Which cost estimation method is being used by Wild Cat Group Company?
CDiff: 3Objective: 3AACSB: Analytical thinking

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