Question :
109.Ernst & Gray, CPAs has three divisions: audit, tax, and : 1302769
109.Ernst & Gray, CPAs has three divisions: audit, tax, and business consulting. When the specifications for the new computer system were established, the audit division needed 50% of the capacity, the tax division required 30%, and business consulting required 20%. The fixed computer department costs are allocated based on computer needs. The variable costs of the computer department are allocated based on the minutes of computer time that each department uses. The computer division budget for fixed costs is $450,000, and the budget for variable costs is $145,600. The company anticipates using 520,000 minutes of computer time. If the audit division uses 250,000 minutes of computer time, what amount of variable costs will be allocated to the audit division (round your intermediate calculation to two decimal places)?
A.$70,000
B.$302,848
C.$286,346
D.$48,533
110.Ernst & Gray, CPAs has three divisions: audit, tax, and business consulting. When the specifications for the new computer system were established, the audit division needed 50% of the capacity, the tax division required 30%, and business consulting required 20%. The fixed computer department costs are allocated based on computer needs. The variable costs of the computer department are allocated based on the minutes of computer time that each department uses. The computer division budget for fixed costs is $450,000, and the budget for variable costs is $145,600. The company anticipates using 520,000 minutes of computer time. If the tax division uses 104,000 minutes of computer time this year, what is the total amount of computer department costs that will be allocated to the tax division (round your intermediate calculation to two decimal places)?
A.$173,680
B.$135,000
C.$164,120
D.$119,120
111.Ernst & Gray, CPAs has three divisions: audit, tax, and business consulting. When the specifications for the new computer system were established, the audit division needed 50% of the capacity, the tax division required 30%, and business consulting required 20%. The fixed computer department costs are allocated based on computer needs. The variable costs of the computer department are allocated based on the minutes of computer time that each department uses. The computer division budget for fixed costs is $450,000, and the budget for variable costs is $145,600. The company anticipates using 520,000 minutes of computer time. What amount of the computer department’s fixed costs will be allocated to the business consulting division?
A.$150,000
B.$29,120
C.$90,000
D.$119,120
112.Ernst & Gray, CPAs has three divisions: audit, tax, and business consulting. When the specifications for the new computer system were established, the audit division needed 50% of the capacity, the tax division required 30%, and business consulting required 20%. The fixed computer department costs are allocated based on computer needs. The variable costs of the computer department are allocated based on the minutes of computer time that each department uses. The computer division budget for fixed costs is $450,000, and the budget for variable costs is $145,600. The company anticipates using 520,000 minutes of computer time. If the business consulting division uses 78,000 minutes of computer time, what is the total amount of computer department costs that will be allocated to the business consulting division (round your intermediate calculation to two decimal places)?
$21,840
$89,340
C.$111,840
D.$119,120
113.Bayard Backup is a manufacturer of data storage devices. Bayard operates two service departments—maintenance and technology, and two production departments—assembly and testing. Maintenance costs are allocated on the basis of square footage occupied, and technology costs are allocated on the basis of the number of workstations. The following data relate to allocations of service department costs:
MaintenanceTechnologyAssemblyTesting
Service department costs $400,000 $230,000
Square footage 2,000 3,000 20,000 30,000
Workstations 4 16 10 30
How much maintenance costs will be allocated to the assembly department using the direct method?
A.$160,000
B.$133,333
C.$266,667
D.$4,000
114.Bayard Backup is a manufacturer of data storage devices. Bayard operates two service departments—maintenance and technology, and two production departments—assembly and testing. Maintenance costs are allocated on the basis of square footage occupied, and technology costs are allocated on the basis of the number of workstations. The following data relate to allocations of service department costs:
MaintenanceTechnologyAssemblyTesting
Service department costs $400,000 $230,000
Square footage 2,000 3,000 20,000 30,000
Workstations 4 16 10 30
How much technology department costs will be allocated to the testing department using the direct method?
A.$92,000
B.$65,714
C.$172,500
D.$115,000
115.VelCraft allocates costs from its payroll department and the maintenance department to its production departments using the direct method of allocation. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet that the production department occupies within the factory. Information about the departments is presented below:
Number ofNumber of Square
DepartmentCostsEmployeesFeet Occupied
Payroll $150,000 2 2,000
Maintenance $220,000 8 64,000
Molding 75 100,000
Finishing 50 60,000
Packaging 25 40,000
What amount of the payroll department costs will be allocated to the molding department?
A.$70,313
B.$185,000
C.$75,000
D.$132,353
116.VelCraft allocates costs from its payroll department and the maintenance department to its production departments using the direct method of allocation. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet that the production department occupies within the factory. Information about the departments is presented below:
Number ofNumber of Square
DepartmentCostsEmployeesFeet Occupied
Payroll $150,000 2 2,000
Maintenance $220,000 8 64,000
Molding 75 100,000
Finishing 50 60,000
Packaging 25 40,000
When the payroll department costs are allocated, what is the amount per employee that will be charged to each of the departments?
A.$937.50
B.$15,000
C.$6.67
D.$1,000
117.VelCraft allocates costs from its payroll department and the maintenance department to its production departments using the direct method of allocation. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet that the production department occupies within the factory. Information about the departments is presented below:
Number ofNumber of Square
DepartmentCostsEmployeesFeet Occupied
Payroll $150,000 2 2,000
Maintenance $220,000 8 64,000
Molding 75 100,000
Finishing 50 60,000
Packaging 25 40,000
What amount of the payroll department costs will be allocated to the packaging department?
A.$23,438
B.$73,333
C.$25,000
D.$36,667
118.VelCraft allocates costs from its payroll department and the maintenance department to its production departments using the direct method of allocation. Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet that the production department occupies within the factory. Information about the departments is presented below:
Number ofNumber of Square
DepartmentCostsEmployeesFeet Occupied
Payroll $150,000 2 2,000
Maintenance $220,000 8 64,000
Molding 75 100,000
Finishing 50 60,000
Packaging 25 40,000
When the maintenance department costs are allocated, what amount will be charged to the packaging department? (Round your intermediate calculation to two decimal places)
A.$44,000
B.$33,083
C.$70,400
D.$52,932
