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Problem V - 20 Points Klingon Company operates a free cafeteria for the benefit of its employees. Budgeted and actual costs in the cafeteria for last...

Problem V – 20 Points
Klingon Company operates a free cafeteria for the benefit of its employees. Budgeted and actual costs in
the cafeteria for last year are given below:

Budgeted Actual
Variable costs $200,000 $168,000
Fixed costs $480,000 $504,000

The variable costs of the cafeteria are allocated to operating departments on the basis of the number of employees in these departments. Data concerning last year are given below:
Machining Assembly
Budgeted number of employees 60 100
Actual number of employees 40 80
Percentage of peak-period requirements 40% 60%

The level of budgeted fixed costs in the cafeteria is determined by the peak-period requirements.

Required:
A. Compute the dollar amount of variable and fixed cost that should have been allocated to each of the operating departments at the beginning of last year for planning purposes.








continued
B. Compute the dollar amount of the variable and fixed costs that should have been charged to each of the operating departments at the end of last year for purposes of evaluating performance. Identify the amount, if any, of actual cafeteria costs that should not be charged to the operating departments.

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Top Answer

Hi, Please find the... View the full answer

8439611.xlsx

SOLUTION
Budgeted
200000
480000 Variable Cost
Fixed Cost Machining
Budgeted No. of employees
Actual No. of employees
% of peak requirement
a) Cost to be charged at the beginning of year
Allocation...

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