1. Brownley Company has two service departments and twooperating (production) departments. The Payroll Department...

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Accounting

1. Brownley Company has two service departments and twooperating (production) departments. The Payroll Department servicesall three of the other departments in proportion to the number ofemployees in each. The Maintenance Department costs are allocatedto the two operating departments in proportion to the floor spaceused by each. Listed below are the operating data for the currentperiod: Service Depts. Production Depts. Payroll MaintenanceCutting Assembly Direct costs $ 32,400 $ 37,500 $ 88,500 $ 117,400No. of personnel 27 27 81 Sq. ft. of space 11,200 16,200 The totalcost of operating the Maintenance Department for the current periodis:
2. The standard materials cost to produce 1 unit of Product R is5 pounds of material at a standard price of $60 per pound. Inmanufacturing 8,300 units, 39,900 pounds of material were used at acost of $61 per pound. What is the direct materials quantityvariance?
3.
The following is a partially completed lower section of adepartmental expense allocation spreadsheet for Brickland. Itreports the total amounts of direct and indirect expenses for thefour departments. Purchasing department expenses are allocated tothe operating departments on the basis of purchase orders.Maintenance department expenses are allocated based on squarefootage. Compute the amount of Purchasing department expense to beallocated to Fabrication.
Purchasing Maintenance Fabrication Assembly
Operating costs $ 44,000 $ 25,200 $ 108,000 $ 74,000
No. of purchase orders 16 4
Sq. ft. of space 3,900 2,100
4.
Vextra Corporation is considering the purchase of new equipmentcosting $44,000. The projected annual cash inflow is $12,800, to bereceived at the end of each year. The machine has a useful life of4 years and no salvage value. Vextra requires a 12% return on itsinvestments. The present value of an annuity of $1 for differentperiods follows:
Periods 12%
1 0.8929
2 1.6901
3 2.4018
4 3.0373

What is the net present value of the machine?

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In: Accounting1. Brownley Company has two service departments and twooperating (production) departments. The Payroll Department services...1. Brownley Company has two service departments and twooperating (production) departments. The Payroll Department servicesall three of the other departments in proportion to the number ofemployees in each. The Maintenance Department costs are allocatedto the two operating departments in proportion to the floor spaceused by each. Listed below are the operating data for the currentperiod: Service Depts. Production Depts. Payroll MaintenanceCutting Assembly Direct costs $ 32,400 $ 37,500 $ 88,500 $ 117,400No. of personnel 27 27 81 Sq. ft. of space 11,200 16,200 The totalcost of operating the Maintenance Department for the current periodis:2. The standard materials cost to produce 1 unit of Product R is5 pounds of material at a standard price of $60 per pound. Inmanufacturing 8,300 units, 39,900 pounds of material were used at acost of $61 per pound. What is the direct materials quantityvariance?3. The following is a partially completed lower section of adepartmental expense allocation spreadsheet for Brickland. Itreports the total amounts of direct and indirect expenses for thefour departments. Purchasing department expenses are allocated tothe operating departments on the basis of purchase orders.Maintenance department expenses are allocated based on squarefootage. Compute the amount of Purchasing department expense to beallocated to Fabrication.PurchasingMaintenanceFabricationAssemblyOperating costs$44,000$25,200$108,000$74,000No. of purchase orders164Sq. ft. of space3,9002,1004.Vextra Corporation is considering the purchase of new equipmentcosting $44,000. The projected annual cash inflow is $12,800, to bereceived at the end of each year. The machine has a useful life of4 years and no salvage value. Vextra requires a 12% return on itsinvestments. The present value of an annuity of $1 for differentperiods follows:Periods12%10.892921.690132.401843.0373What is the net present value of the machine?

	Purchasing		Maintenance		Fabrication		Assembly
Operating costs	$	44,000	$	25,200	$	108,000	$	74,000
No. of purchase orders						16		4
Sq. ft. of space						3,900		2,100