172.The Linens Department of the Krafton Department Store had sales of $282,000, cost of goods sold of $173,500, indirect expenses of $19,875, and direct expenses of $41,250 for the current period. What is the Linens Department's contribution to overhead as a percent of sales?
173.Marsha Hansen, the manager of the Flint Plant of the Michigan Company is responsible for all of the plant's costs except her own salary. There are two operating departments within the plant, Departments A and B. Each department has its own manager. There is also a maintenance department that provides services equally to the two operating departments. The following information is available.
ABudget BTotalAActual BTotal
Employee wages$3,500$4,000$7,500$3,200$4,700$7,900
Department
Manager's salary8008001,6008008001,600
Supplies7506001,3507005901,290
Building rent1,5001,5003,0001,4001,4002,800
Utilities300300600375375750
Maintenance 3,300 3,300 6,600 3,000 3,000 6,000
Totals $10,150 $10,500 $20,650 $9,475 $10,865 $20,340
Department managers are responsible for the wages and supplies in their department. They are not responsible for their own salary. Building rent, utilities, and maintenance are allocated to each department based on square footage.
Required:
Complete the responsibility accounting performance reports below that list costs controllable by the manager of Department A, the manager of Department B, and the manager of the Flint plant.
Budgeted amountActual amountOver (under) budget
Manager, Flint Plant
Controllable costs:
174.Franklin Co. has three departments: purchasing, human resources, and assembly. In a recent month the three departments incurred two shared indirect expenses. The amounts of the indirect expenses and the bases used to allocate them follow. Use this information to allocate each of the two indirect expenses across the three departments using the tables provided below.
Indirect ExpenseCostAllocation Base
Supervision$85,000Number of employees
Utilities and Insurance 38,000Square feet occupied
Total 123,000
Departmental data for the company's recent reporting period follow.
DepartmentEmployeesSquare Feet
Purchasing1015,000
Human Resources610,000
Assembly 20 25,000
Total 36 50,000
Supervision
Purchasing
Human Resources
Assembly
Total
Utilities and Insurance
Purchasing
Human Resources
Assembly
Total
175.Boiano Corp. operates a retail store and has two service departments and two operating departments, Hardware and Automotive. During the current year, the departments had the following direct expenses and occupied the following amount of floor space.
DepartmentDirect ExpensesSquare Feet
Advertising$50,000750
Administrative100,0001,500
Hardware150,0003,000
Automotive200,0009,750
The advertising department developed and aired 150 spots. Of these spots, 60 spots were for Hardware and 90 spots were for Automotive. The store sold $1,500,000 of merchandise during the year; $675,000 in Hardware and $825,000 in Automotive. Indirect expenses include rent, utilities, and insurance expense. Total indirect expenses of $220,000 are allocated to all departments. Prepare a departmental expense allocation spreadsheet for Boiano. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) allocate the indirect expenses to each department on the basis of floor space occupied, (3) the advertising department's expenses to the two operating departments on the basis of ad spots placed promoting each department's products, (4) the administrative department's expenses based on the amount of sales. Complete the departmental expense allocation spreadsheet below. Provide supporting computations for the expense allocations