# Accounting problem | Business & Finance homework help

Problem 1 – Service Cost Allocation
Computer Information Services is a computer software consulting company. Its three
major functional areas are computer programming, information systems consulting, and
software training. Carol Birch, a pricing analyst in the Accounting Department, has been
asked to develop total costs for the functional areas. These costs will be used as a
guide in pricing a new contract. In computing these costs, Birch is considering three
different methods of allocating overhead costs-the direct method, the step method, and
the reciprocal method. Birch assembled the following data on overhead from its two
service departments, the Information Systems Department and the Facilities
Department.

Get a plagiarism free copy of this essay from our experts
Accounting problem | Business & Finance homework help
For as low as \$13/Page

Information systems is allocated on the basis of hours of computer usage; facilities are
allocated on the basis of floor space.
Required:
1. Allocate the service department costs to the user departments using the direct
method. (Round to the
nearest dollar and provide total user department costs)
2. Allocate the service department costs to the user departments using the step method.
Allocate
Information Systems first and round to the nearest dollar.

Problem 2 – Variance Analysis
The XYZ Company uses a standard cost accounting system and estimates production
for the year to be
60,000 units. At this volume, the company’s variable overhead costs are \$0.50 per direct
labor hour.
The company’s single product has a standard cost of \$30.00 per unit. Included in the
\$30.00 is \$13.20 for direct materials (3 yards) and \$12.00 of direct labor (2 hours).
Production information for the month of March follows:

Required: (Be sure to indicate whether the variances are favorable or unfavorable.)
a. Compute the direct material price variance.
b. Compute the direct material efficiency
variance. c. Compute the direct labor
price (rate) variance.
d. Compute the direct labor efficiency variance

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.