Business, 26.06.2019 21:40 pbargy7830

Exercise 6-5. choice of allocation base (cost driver) for service departments [lo 1] auburn banking and loan company has six service departments: 1. human resources (hires employees and manages benefits) 2. duplicating (performs copy services) 3. janitorial (provides routine cleaning services) 4. accounting (provides accounting services) 5. graphic design (designs forms) 6. food services (provides free breakfast and lunch to employees) the services are used by the company’s two subsidiaries, auburn personal banking and auburn business banking. required a. suggest allocation bases to be used in allocating the service department costs to the two subsidiaries. b. food services are used by employees in the human resources department. would a share of food service costs be allocated to human resources under the direct method of allocation?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 10:00

Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.

Answers: 1

Answer

Business, 22.06.2019 20:30

The smelting department of kiner company has the following production and cost data for november. production: beginning work in process 3,700 units that are 100% complete as to materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs for the month of november.

Answers: 3

Answer

Business, 22.06.2019 22:40

The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?

Answers: 2

Answer

Business, 22.06.2019 23:10

Until recently, hamburgers at the city sports arena cost $4.70 each. the food concessionaire sold an average of 13 comma 000 hamburgers on game night. when the price was raised to $5.40, hamburger sales dropped off to an average of 6 comma 000 per night. (a) assuming a linear demand curve, find the price of a hamburger that will maximize the nightly hamburger revenue. (b) if the concessionaire had fixed costs of $1 comma 500 per night and the variable cost is $0.60 per hamburger, find the price of a hamburger that will maximize the nightly hamburger profit.

Answers: 1

Answer

You know the right answer?

Exercise 6-5. choice of allocation base (cost driver) for service departments [lo 1] auburn banking...

Questions