Describe the differences between support and producing departments. Give three examples of each.

Aquamarine company incurred $20,000 of common fixed costs and $80,000 of common variable costs. These costs are to be allocated to its two departments: Department A and Department B. Data on capacity provided and capacity used by the two departments follows: ​ Capacity Provided Capacity Used Department in Hours in Hours A 600 550 B 400 450 Common fixed costs are allocated to Departments A and B on the basis of capacity provided, and common variable costs are allocated to Departments A and B on the basis of capacity used. The fixed and variable costs allocated to Department A are:

Allocation is not necessary when using JIT manufacturing.

A possible causal factor to use when allocating cafeteria costs would be

Discus Productions needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 10 percent of total sales each month. Historically, sales on account have been collected as follows: 60 percent in the month of sale, 30 percent in the month after the sale, and the remaining 10 percent two months after the sale. Sales for the quarter are projected as follows: April, $120,000; May, $100,000; and June, $80,000. Accounts receivable on March 31 were $60,000. ​ Discus Productions would expect to have an accounts receivable balance on June 30 of

Diane’s Pottery Manufacturing Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $30,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $4,500 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $9,000 and $15,000, respectively. Data on standard service hours and number of employees are as follows:     Maint. Person. Dept. Dept.   Dept. Dept. X Y Standard service hours used 100  75 600 300 Number of employees  50 100 150 150 Direct labor hours 125 125 500 250 ​ What are the total overhead costs associated with Department Y after allocating the Maintenance and Personnel Departments using the direct method?

Assuming all other things are equal, if there was a decrease in the break-even point, fixed costs must have:

Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:   Activity Cost Formula Maintenance $11,000 + $2 per machine hour Machining $55,000 + $3 per machine hour Inspection $70,000 + $500 per batch Setups $2,000 per batch Purchasing $80,000 + $150 per purchase order ​ Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders   Maintenance $20,000 Machining 73,000 Inspection 73,000 Setups 18,000 Purchasing 82,000 ​ What is the budget variance for machining in an activity-based performance report?

A static budget is one developed for a single level of activity.

In a cost-volume-profit graph, the total revenue line rises with a slope equal to