Question : Answer the following questions using the information below: At the : 1216901

 

Answer the following questions using the information below:

 

At the Todd Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.

Total personnel department costs are $320,000.

 

DepartmentABC

Number of employees30270100

The number of new hires8125

 

8) If the number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A?

A) $24,000

B) $10,667

C) $102,400

D) $40,000

9) If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A?

A) $24,000

B) $10,667

C) $102,400

D) $40,000

 

10) Which cost estimation method is being used by Todd Company?

A) the industrial engineering method

B) the conference method

C) the account analysis method

D) the quantitative analysis method

 

Answer the following questions using the information below:

 

At the Christopher Company, the cost of the library and information center has always been charged to the various departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs.

Total library and information center costs are $150,000.

 

DepartmentABC

Number of employees125500125

The number of engineers07525

 

11) Which cost estimation method is being used by Christopher Company?

A) the quantitative analysis method

B) the industrial engineering method

C) the conference method

D) the account analysis method

12) If the number of employees is considered the cost driver, what amount of library and information center costs will be allocated to Department A?

A) $100,000

B) $25,000

C) $0

D) $112,500

 

13) If the number of engineers is considered the cost driver, what amount of library and information center costs will be allocated to Department A?

A) $100,000

B) $25,000

C) $0

D) $112,500

Answer the following questions using the information below:

 

Jerry’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2011 operations.

 

Sales (1,000 televisions)$ 900,000

Cost of goods sold400,000

Store manager’s salary per year70,000

Operating costs per year157,000

Advertising and promotion per year15,000

Commissions (4% of sales)36,000

 

14) What was the variable cost per unit sold for 2011?

A) $36

B) $436

C) $678

D) $400

 

15) What were total fixed costs for 2011?

A) $678,000

B) $436,000

C) $242,000

D) $227,000

16) What are the estimated total costs if Penny’s expects to sell 3,000 units next year?

A) $1,550,000

B) $1,332,000

C) $1,671,000

D) $1,453,000

 

17) Which cost estimation method is being used by Jerry’s TV and Appliance Store?

A) the industrial engineering method

B) the conference method

C) the account analysis method

D) the quantitative analysis method

 

 

 

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