Question :
15) Joyful Praises Corporation has total advertising expenses of $84,000: : 1177341
15) Joyful Praises Corporation has total advertising expenses of $84,000: $32,000 for radio advertising and $52,000 for print advertising. The print advertising is allocated to Departments A and B based on net sales generated in each department. Department A has net sales of $558,000 and Department B has net sales of $186,000. How much of the print advertising should be allocated to Department A?
A) $13,000
B) $39,000
C) $63,000
D) $21,000
16) If the gross sales for the computer department are $3,700 and the book department gross sales are $6,300, what is the allocation for advertising expense of $750 to these departments, based on gross sales?
A) Computer department $425; book department $325
B) Computer department $375; book department $375
C) Computer department $277.50; book department $472.50
D) Computer department $462.50; book department $287.50
17) Windermere Corporation has 25,000 square feet in department A; 20,000 square feet in department B; and 55,000 square feet in department C. Janitorial services as based on square footages in each department. How will the $35,000 of janitorial services be allocated?
A) $19,250 to C; $7,000 to B; and $8,750 to A.
B) $19,250 to A; $7,000 to B; and $8,750 to C.
C) Split evenly ($11,666.67) to each department.
D) Cannot be determined by given information.
18) Which of the following is not a direct departmental expense in a sales department?
A) Sales salaries
B) Delivery expense for related items
C) Advertising for the sales department
D) All are direct departmental expenses.
19) If the property, plant, and equipment can be traced to a specific department, depreciation expense is a(n):
A) direct expense.
B) indirect expense.
C) cash expense.
D) sales expense.
20) Compute net income for the housewares department, when gross profit is $550,000, direct expenses $235,000, indirect expenses are $110,000 and sales are $875,000.
A) ($20,000)
B) $530,000
C) $205,000
D) $325,000
21) If there is a total of 50,000 square feet of floor space, and the hardware department utilizes 12,500 square feet, what percent of the total square footage is in hardware?
A) 20%
B) 25%
C) 40%
D) 80%
22) Which of the following indirect expenses would most likely be allocated on the basis of gross sales?
A) Rent expense
B) Utilities expense
C) Miscellaneous expense
D) None of the above
23) Advertising expense totaled $40,000. If indirect advertising costs are allocated based on gross sales per department, what amount would be allocated to the Jewelry department if $10,000 of advertising is indirect?
Gross Sales: Jewelry, $60,000; Glassware, $50,000; Watches, $40,000.
A) $16,000
B) $4,000
C) $20,000
D) $3,333
24) Advertising expense totaled $20,000. If indirect advertising costs are allocated based on gross sales per department, what amount would be allocated to the glassware department if $5,000 of advertising is indirect?
Gross Sales: jewelry, $80,000; glassware, $30,000; watches, $40,000.
A) $1,000
B) $1,333
C) $2,500
D) $2,667
