Pronghorn Company is a manufacturer of womens and mens swimsuits. The company uses a dual-rate...
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Accounting
Pronghorn Company is a manufacturer of womens and mens swimsuits. The company uses a dual-rate system to allocate support costs. Last years support departments fixed and variable costs are as follows:
Human Accounting Resources Janitorial Total Variable costs $ 17,100 $ 22,300 $ 65,300 $104,700 Fixed costs Total costs 75,600 $ 124,900 $ 122,000 $322,500 58,500 102,600 56,700 217,800 Allocation base amounts for all the departments are as follows: Human Accounting Resources Janitorial Women's Men's Total Employees Time spent for accounting Time spent cleaning Square metres Direct costs 19% 15% 131 $75,600 $ 124,900 $ 122,000 16% 5% 74 11% 9% 102 20 100% 100% 1,337 725,000 $458,000 $1,505,500 30% 30% 530 24% 41% 500
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