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  • Tots R Us - Spreadsheet

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    Viet
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    This document discusses the allocation of costs between a preschool class and single birthday parties held at the same location. It notes that the original cost analysis did not properly allocate the costs of the property, plant, and equipment (PP&E) to the birthday party. It also states that building costs should be allocated to total meetings regardless of excess capacity. Additionally, it agrees that allocating all costs to each activity is important for accurately calculating the unit cost per meeting. Finally, it says advertising costs should be included as an indirect cost in the unit cost calculation.

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    Tots r Us draft spreadsheet

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    Tots r Us - Spreadsheet

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    This document discusses the allocation of costs between a preschool class and single birthday parties held at the same location. It notes that the original cost analysis did not properly allocate the costs of the property, plant, and equipment (PP&E) to the birthday party. It also states that building costs should be allocated to total meetings regardless of excess capacity. Additionally, it agrees that allocating all costs to each activity is important for accurately calculating the unit cost per meeting. Finally, it says advertising costs should be included as an indirect cost in the unit cost calculation.

    Copyright:

    © All Rights Reserved
    Scarica in formato XLSX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    73 visualizzazioni2 pagine

    Tots R Us - Spreadsheet

    Caricato da

    Viet
    This document discusses the allocation of costs between a preschool class and single birthday parties held at the same location. It notes that the original cost analysis did not properly allocate the costs of the property, plant, and equipment (PP&E) to the birthday party. It also states that building costs should be allocated to total meetings regardless of excess capacity. Additionally, it agrees that allocating all costs to each activity is important for accurately calculating the unit cost per meeting. Finally, it says advertising costs should be included as an indirect cost in the unit cost calculation.

    Copyright:

    © All Rights Reserved
    Scarica in formato XLSX, PDF, TXT o leggi online su Scribd
    Segnala contenuti inappropriati
    di 2

    Q1

    Preschool class Single birthday party


    Total meetings 1,200 150
    PP&E 216,000 -
    Supplies and food 18,000 3,000
    Salaries
    Director 45,000 5,000
    Full-time employees 40,000 -
    Part-time employees - 10,000
    Total cost 319,000 18,000
    Cost per meeting $266 $120

    Q2
    No, birthday party uses PP&E as well thus the cost should be allocated to party's cost.

    Q3
    Building cost should be allocated to the total meetings regardless excess capacity.

    Q4
    Agree. Allocating costs to each business activity is helpful to calculate unit cost.

    Q5
    No. Advertising cost is indirect cost and should be included in unit cost.

    Q6
    Preschool class Single birthday party
    Total meetings 1,200 150
    PP&E 192,000 24,000
    Supplies and food 18,000 3,000
    Salaries
    Director 45,000 5,000
    Full-time employees 40,000 -
    Part-time employees - 10,000
    Advertising
    Total cost 295,000 42,000
    Cost per meeting $245.83 $280.00
    4,200
    51

    o party's cost.

    s capacity.

    41

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