hi, attached please find my question. thank you.

hi, attached please find my question. thank you.

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Klingon Company operates a free cafeteria for the benefit of its employees. Budgeted and actual
costs in
the cafeteria for last year are given below:
Budgeted
Actual
Variable costs.
…..
$200,000
$168,000
Fixed costs.
………
$480,000
$504,000
The variable costs of the cafeteria are allocated to operating departments on the basis of
the number of employees in these departments. Data concerning last year are given
below:
Machining
Assembly
Budgeted number of employees.
…………….
60
100
Actual number of employees.
………………..
40
80
Percentage of peak-period requirements.

40%
60%
The level of budgeted fixed costs in the cafeteria is determined by the peak-period requirements.
Required:
A.
Compute the dollar amount of variable and fixed cost that should have been allocated
to each of the operating departments at the beginning of last year for planning purposes.
B.
Compute the dollar amount of the variable and fixed costs that should have been
charged to each of the operating departments at the end of last year for purposes of
evaluating performance. Identify the amount, if any, of actual cafeteria costs that should
not be charged to the operating departments.

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