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1.

The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are processed into silver alloy that is used to make platters and cups. TSC incurred $40,000 of materials cost and $44,000 of labor cost to produce the silver alloy. Platters are made first and the residual alloy is remixed into a lower grade silver plated material that is used to make the cups. Remixing cost amount to $2,000. The recent batch contained 4,000 platters and 1,000 cups. TSC sold the platters for $100,000 and the cups for $12,000. Based on this information the total amount of joint cost is

2.

Weib Corporations computer services department assists two operating departments in using the companys information system effectively. The annual cost of computer services is $535,600. The production department employs 36 employees, and the sales department employs 16 employees. Weib uses the number of employees as the cost driver for allocating the cost of computer services to operating departments.

Required:

Allocate the cost of computer services to operating departments. Department allocation cost production sales 3. Kaplan Services Company (KSC) has 53 employees, 37 of whom are assigned to Division A and 16 to Division B. KSC incurred $316,410 of fringe benefits cost during 2014. Required: Determine the amount of the fringe benefits cost to be allocated to Division A and to Division B. division allocated cost A B 4. Chandler Hats Corporation manufactures three different models of hats: Vogue, Beauty, and Glamour. Chandler expects to incur $640,000 of overhead cost during the next fiscal year. Other budget information follows. Vogue Beauty Glamour Total Direct labor hours 3,800 5,800 10,400 20,000 Machine hours 1,400 1,400 1,200 4,000 Required: a. Use direct labor hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. Product allocation rate * weight of base = allocated cost vogue beauty glamour total b. Use machine hours as the cost driver to compute the allocation rate and the budgeted overhead cost for each product. 14. Production workers for Soloman Manufacturing Company provided 4,200 hours of labor in January and 2,800 hours in February. The company, whose operation is labor intensive, expects to use 33,100 hours of labor during the year. Soloman paid a $264,800 annual premium on July 1 of the prior year for an insurance policy that covers the manufacturing facility for the following 12 months. Required: Based on this information, how much of the insurance cost should be allocated to the products made in January and to those made in February? month allocated cost january february 15. Agnew Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 348,000 pounds of raw materials, the company generates 78,000 pounds of B7, 166,000 pounds of K6, and 104,000 pounds of X9. A standard batch costs $3,480,000 to produce. The sales prices per pound are $6, $10, and $18 for B7, K6, and X9, respectively. Required: a. Allocate the joint product cost among the three final products using weight as the allocation base. product allocation rate * weight of base = allocated cost B7 K6 X9 Total allocated cost b. Allocate the joint product cost among the three final products using market value as the allocation base. (Round "Allocation rate" to 2 decimal places.)

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