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The following information relates to overhead cost at Chocolates by Jacki for th

ID: 2334871 • Letter: T

Question

The following information relates to overhead cost at Chocolates by Jacki for the current year 2 Total costs and distribution of resource consumption across activity cost pools Activity Cost Pools Total Cost Orders Development Relations Other Total 6 Production Department $ 400,000 150,000 120,000 75,000 Indirect factory wages 15% Factory equipment depreciation 9 Factory ublites 0 Factory property taxes and incurance 55% 59% 57% 5%| 15% 7%| 10% 100% 100% 100% 100% 34% 33% 12 General Administrative Department 3 Administrative wages and salares 14 Office equipment depreciation 30% 37% 100% 100% 100% 100% 275,000 40,000 16% 15% Administrative property taxes and insurance 0% 16 7 Marketing Department 30% 3 100% 100 Marketing wagcs and salbries 150,000 100,000 15% 9 Sellin cxpense 20 21 Use the dats to complete a First Stage Allocation to Activity Cost Pools. 22 When completing the table, copy formulas as appropriate 23 16%

Explanation / Answer

First Stage Allocation to cost pools

Customer Orders

Product department

Customer Relationship

Others

Total

Production Department

Indirect Factory wages

$    200,000.00

$ 120,000.00

$60,000.00

$ 20,000.00

$       400,000.00

Factory Equipment Depreciation

$     82,500.00

$   45,000.00

$ 0.00

$ 22,500.00

$       150,000.00

Factory Utilities

$     70,800.00

$   40,800.00

$ 0.00       

$ 8,400.00

$       120,000.00

Factory Property Taxes and Insurance

$     42,750.00

$   24,750.00

$ 0.00

$ 7,500.00

$         75,000.00

General and Administrative Department

Administrative wages and Salaries

$     55,000.00

$   27,500.00

$ 110,000.00

$ 82,500.00

$       275,000.00

Office Equipment Depreciation

$     12,800.00

$    6,400.00

$    6,000.00

$ 14,800.00

$         40,000.00

Administrative Property Taxes and Insurance

$       0.00

$ 0.00

$   0.00

$ 60,000.00

$         60,000.00

Marketing department

Marketing wages and salaries

$     30,000.00

$   15,000.00

$   60,000.00

$ 45,000.00

$       150,000.00

Selling Expenses

$     32,000.00

$   16,000.00

$   15,000.00

$ 37,000.00

$       100,000.00

Total

$    525,850.00

$ 295,450.00

$ 251,000.00

$ 297,700.00

$ 1,370,000.00

First Stage Allocation to cost pools

Customer Orders

Product department

Customer Relationship

Others

Total

Production Department

Indirect Factory wages

$    200,000.00

$ 120,000.00

$60,000.00

$ 20,000.00

$       400,000.00

Factory Equipment Depreciation

$     82,500.00

$   45,000.00

$ 0.00

$ 22,500.00

$       150,000.00

Factory Utilities

$     70,800.00

$   40,800.00

$ 0.00       

$ 8,400.00

$       120,000.00

Factory Property Taxes and Insurance

$     42,750.00

$   24,750.00

$ 0.00

$ 7,500.00

$         75,000.00

General and Administrative Department

Administrative wages and Salaries

$     55,000.00

$   27,500.00

$ 110,000.00

$ 82,500.00

$       275,000.00

Office Equipment Depreciation

$     12,800.00

$    6,400.00

$    6,000.00

$ 14,800.00

$         40,000.00

Administrative Property Taxes and Insurance

$       0.00

$ 0.00

$   0.00

$ 60,000.00

$         60,000.00

Marketing department

Marketing wages and salaries

$     30,000.00

$   15,000.00

$   60,000.00

$ 45,000.00

$       150,000.00

Selling Expenses

$     32,000.00

$   16,000.00

$   15,000.00

$ 37,000.00

$       100,000.00

Total

$    525,850.00

$ 295,450.00

$ 251,000.00

$ 297,700.00

$ 1,370,000.00