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

 

 

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