Question : 99.Maintenance cost allocated to Wakshaw’s three producing departments based the : 1302768

Economics

99.Maintenance cost is allocated to Wakshaw’s three producing departments based on the machine hours used in each department. The maintenance cost for June was $200,000. The three departments had the following usage for June:

DepartmentMachine hours usedDirect labor hours used

Assembly 600 2,000

Fabrication 600 5,000

Testing 800 3,000

How much maintenance cost should be allocated to the fabrication department for June?

A.$60,000

B.$100,000

C.$66,667

D.$6,000

100.Excellence Pastries produces baked goods. Utility costs are allocated to the products based on the baking time required for the product. Utility costs of $291,500 are budgeted in a period when 550,000 total minutes of baking time and 100,000 minutes of cooling time are anticipated. If a batch of rolls bakes for 45 minutes, and then cools for 15 minutes, what amount of utility cost will be allocated to each batch of rolls?

A.$38.87

B.$23.85

C.$20.18

D.$31.80

101.ZanaTech has an on-site cafeteria in which it provides free meals for employees. The company allocates the cost of the cafeteria to production departments using the direct method based on the number of employees in each department. The four production departments in the company have the following number of employees: molding, 15; polishing, 20; engraving, 10; and packaging, 15. There are 20 employees in the cafeteria. The cafeteria’s costs are budgeted at $144,000 for the year. When the cafeteria’s costs are allocated, what is the amount per employee that will be allocated to the packaging department each year?

A.$2,400

B.$9,600

C.$1,800

D.None of these answer choices are correct.

102.ZanaTech has an on-site cafeteria in which it provides free meals for employees. The company allocates the cost of the cafeteria to production departments using the direct method based on the number of employees in each department. The four production departments in the company have the following number of employees: molding, 15; polishing, 20; engraving, 10; and packaging, 15. There are 20 employees in the cafeteria. The cafeteria’s costs are budgeted at $144,000 for the year. What amount of the cafeteria’s cost will be allocated to the molding department?

A.$27,000

B.$9,600

C.$2,400

D.$36,000

103.ZanaTech has an on-site cafeteria in which it provides free meals for employees. The company allocates the cost of the cafeteria to production departments using the direct method based on the number of employees in each department. The four production departments in the company have the following number of employees: molding, 15; polishing, 20; engraving, 10; and packaging, 15. There are 20 employees in the cafeteria. The cafeteria’s costs are budgeted at $144,000 for the year. What amount of cafeteria cost will be allocated to the engraving department? Use 4 significant digits for calculations.

A.$2,400

B.$24,000

C.$18,000

D.$14,400

104.ZanaTech has an on-site cafeteria in which it provides free meals for employees. The company allocates the cost of the cafeteria to production departments using the direct method based on the number of employees in each department. The four production departments in the company have the following number of employees: molding, 15; polishing, 20; engraving, 10; and packaging, 15. There are 20 employees in the cafeteria. The cafeteria’s costs are budgeted at $144,000 for the year. The actual cafeteria costs totaled $147,000 for the year. What is the total amount of the cafeteria’s costs that will be allocated to the production departments?

A.$108,000

B.$144,000

C.$147,000

D.None of these answer choices are correct.

105.Ransall Auto Parts has two service departments—maintenance and personnel, and three production departments—fabrication, assembly, and packaging. Service costs are allocated to producing departments using the direct method. Information on overhead in each department and possible allocation bases appear below:

MaintenancePersonnelFabricationAssemblyPackaging

Cost $90,000 $130,000

Machine hours 12,000 30,000 18,000

Employees 4 16 24 30 26

Using the most logical activity base, how much maintenance cost will be allocated to packaging?

A.$3,600

B.$27,000

C.$33,750

D.$30,000

106.Ransall Auto Parts has two service departments—maintenance and personnel, and three production departments—fabrication, assembly, and packaging. Service costs are allocated to producing departments using the direct method. Information on overhead in each department and possible allocation bases appear below:

MaintenancePersonnelFabricationAssemblyPackaging

Cost $90,000 $130,000

Machine hours 12,000 30,000 18,000

Employees 4 16 24 30 26

Using the most logical activity base, how much personnel cost will be allocated to the packaging department?

A.$7,150

B.$39,000

C.$33,800

D.$42,250

107.Ransall Auto Parts has two service departments—maintenance and personnel, and three production departments—fabrication, assembly, and packaging. Service costs are allocated to producing departments using the direct method. Information on overhead in each department and possible allocation bases appear below:

MaintenancePersonnelFabricationAssemblyPackaging

Cost $90,000 $130,000

Machine hours 12,000 30,000 18,000

Employees 4 16 24 30 26

Using the most logical activity base, how much maintenance cost will be allocated to the personnel department?

A.$26,000

B.$39,000

C.$18,000

D.$0

108.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 variable costs will be allocated when a division uses a minute of computer time?

A.$4.50

B.$2.80

C.$1.15

D.$0.28

Continue to order Get a quote

July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.