Kia Corporation has two departments, A and B. Central costs could be allocated to the...
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Accounting
Kia Corporation has two departments, A and B. Central costs could be allocated to the two departments in various ways. Square footage of department A and B 6,000 and 18,000 square feet respectively, Number of employees of department A and B 1,120 and 480 respectively, and sales of department A and B $400,000 and $2,000,000 respectively. If total processing costs of $96,000 are allocated on the basis of number of employees, the amount allocated to Department A would be:
a. $24,000
b. $28,000
c. $16,000
d. $67,200
For 2020, Mariams Animal Supply Manufacturing uses machine-hours as the only overhead cost-allocation base. The accounting records contain estimated and actual Manufacturing overhead costs of $100,000 and $120,000 respectively and estimated and actual Machine-hours of 20,000 and 25,000 respectively. Using normal costing, the amount of manufacturing overhead costs allocated to jobs during 2020 is:
a. $100,000
b. $125,000
c. $150,000
d. $120,000
Please, quick, there is no time.
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