861538.

462

215384.615
0.25

$600,000 + 0.1 IS
IS = $2,400,000 + 0.25 AS

is
as

2400000
150000
0.025
0.975
2550000
2615384.62
600000 261538.462 861538.462

is

2400000 215384.615 2615384.62

SUPPORT DEPARTMENTS
AS

OPERATING DEPARTMENTS

IS

GOVT

Budgeted overhead costs before any

interdepartment cost allocations

$ 600,000 $ 2,400,000

$ 8,756,000

Allocation of Administrative Service (25/100 ; 40/100; 35/100)

$ 861,538 $

215,385

344,615

Allocation of Information Systems (1/10 ; 3/10 ; 6/10)

$ 261,538 $ 2,615,385

784,615

Total budgeted overhead of operating departments

$ 9,885,231

- $

OPERATING DEPARTMENTS
CORP

Total

$ 12,452,000 $ 24,208,000
$

301,538

$ 1,569,231
$ 14,322,769 $ 24,208,000

Actual
Number
of Gifts
Department
Wrapped
Womens face wash $ 2,020
Mens face wash
$ 730
Fragrances
$ 1,560
Body wash
$ 545
Hair products
$ 1,495
Total
$ 6,350

Budgeted
Number
of Gifts
to Be
Wrapped
$ 2,470
$ 825
$ 1,805
$ 430
$ 1,120
$ 6,650

Practical
Capacity
Available
for GiftWrapping
$ 2,640
$ 945
$ 1,970
$ 650
$ 795
$ 7,000

Budgete
d rate
based on
the
budgete
d
number
of gifts
to be
Department
wrapped
Womens face wash $ 1.40
Mens face wash
$ 1.40
Fragrances
$ 1.40
Body wash
$ 1.40
Hair products
$ 1.40
Total
$ 1.40

Budgeted
Number
of Gifts
to Be
Wrapped
$ 2,470
$ 825
$ 1,805
$ 430
$ 1,120
$ 6,650

Total
#######
#######
#######
$ 602.00
#######
#######

Department

Budgete
d rate
based on
the
budgete
d
number
of gifts
to be
wrapped

Actual
Number
of Gifts
Wrapped Total

Budgeted rate based on the budgeted n

Budgeted Number of Gifts to Be Wrappe

Budgeted fixed costs
Fixed cost per gift based on budg
Average budgeted variable cost p

Budgeted rate based on the practical gif

Budgeted Number of Gifts to Be Wrappe
Budgeted fixed costs
Fixed cost per gift based on budg
Average budgeted variable cost p

Womens face wash

Mens face wash
Fragrances
Body wash
Hair products
Total

$
$
$
$
$
$

1.40
1.40
1.40
1.40
1.40
1.40

Budgete
d rate
based on
the
practical
giftwrappin
g
capacity
Department
available
Womens face wash $ 1.35
Mens face wash
$ 1.35
Fragrances
$ 1.35
Body wash
$ 1.35
Hair products
$ 1.35
Total
$ 1.35

Department
Womens face wash
Mens face wash
Fragrances
Body wash
Hair products
Total

Average
VC
0.4
0.4
0.4
0.4
0.4
0.4

$
$
$
$
$
$

2,020 #######
730 #######
1,560 #######
545 $ 763.00
1,495 #######
6,350 #######

a. fixed-cost rate is calculated using bud

Budgeted fixed costs
Practical Capacity
Budgeted rate for fixed costs($6,6
Average budgeted variable cost p

Actual
Number
of Gifts
Fixed Cost
Wrapped Total
Rate
$ 2,020 #######
1.35
$ 730 $ 985.50
1.35
$ 1,560 #######
1.35
$ 545 $ 735.75
1.35
$ 1,495 #######
1.35
$ 6,350 #######
1.35

Actual
Number
$ 2,020
$ 730
$ 1,560
$ 545
$ 1,495
$ 6,350

$
$
$
$
$
$

TVC
808
292
624
218
598
2,540

Budgeted FC
Number Rate
TFC
$ 2,470 1.35 $ 3,334.50
$
825 1.35 $ 1,113.75
$ 1,805 1.35 $ 2,436.75
$
430 1.35 $ 580.50
$ 1,120 1.35 $ 1,512.00
$ 6,650 1.35 $ 8,977.50

Budgeted rate based on the budgeted number of gifts to be wrapped

Budgeted Number of Gifts to Be Wrapped

6650
Budgeted fixed costs
$ 6,650
Fixed cost per gift based on budgeted volume ( $6,650/6,650)
$ 1.00
Average budgeted variable cost per gift
$ 0.40
Total cost per gift wrapped
$ 1.40

Budgeted rate based on the practical gift-wrapping capacity available

Budgeted Number of Gifts to Be Wrapped
7000
Budgeted fixed costs
$ 6,650
Fixed cost per gift based on budgeted volume ( $6,650/7,000)
$ 0.95
Average budgeted variable cost per gift
$ 0.40
Total cost per gift wrapped
$ 1.35

a. fixed-cost rate is calculated using budgeted costs and the practical gift-wrapping capacity
Budgeted fixed costs
$ 6,650
Practical Capacity
7000
Budgeted rate for fixed costs($6,650 7,000 )
$ 0.95
Average budgeted variable cost per gift
$ 0.40
Total cost per gift wrapped
$ 1.35

TVC + TFC
$ 4,142.50
$ 1,405.75
$ 3,060.75
$
798.50
$ 2,110.00
$ 11,517.50