Question : 25) What the fixed cost per year and the variable : 1186042

 

25) What is the fixed cost per year and the variable cost per hour, respectively, for the Cassette Department using the dual-rate method, assuming that the allocation bases are capacity for fixed costs and actual usage for variable costs?

A) $720,000 and $480

B) $720,000 and $600

C) $765,958 rounded and $480

D) $765,958 rounded and $600

E) $900,000 and $600

26) What are the fixed cost per year and the variable cost per hour for the CD Department if the dual-rate method is used? Assume that the allocation bases are budgeted usage for fixed costs and actual usage for variable costs.

A) $100,270 and $600

B) $126,000 and $600

C) $134,043 rounded and $89.36

D) $134,043 rounded and $600

E) $900,000 and $600

 

27) What is the allocated cost to the two departments, respectively, if the single rate is $1,000? Assume that the Cassette and CD Departments used 1,750 and 200 hours, respectively.

A) $807,692 rounded and $92,308 rounded

B) $900,000 and $200,000

C) $1,750,000 and $200,000

D) $2,800,000 and $320,000

E) $900,000 and $320,000

 

28) What is the allocated cost to the two departments, respectively, if budgeted usage is the base for fixed costs and actual usage is the base for variable costs? (Use dual-rate method.) Assume that the Cassette and CD Departments used 1,750 and 200 hours, respectively.

A) $1,050,000; $120,000

B) $1,787,240; $204,256

C) $1,815,957; $254,043

D) $2,000,126; $294,112

E) $1,787,240; $254,043

Answer the following questions using the information below:

 

The Bonawitz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year:

 

Budgeted costs of operating the copying facility

for 200,000 to 300,000 copies:

 

       Fixed costs per year

$30,000

       Variable costs

3 cents (.03) per copy

 Budgeted long-run usage in copies per year:

 

       Marketing Department

60,000 copies

       Operations Department

190,000 copies

 

Budgeted amounts are used to calculate the allocation rates.

 

Actual usage for the year by the Marketing Department was 40,000 copies and by the Operations Department was 180,000 copies.

 

29) If a single-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Marketing Department?

A) $9,000

B) $1,800

C) $7,200

D) $28,500

E) $24,600

 

30) If a single-rate cost-allocation method is used, what amount of copying facility costs will be allocated to the Marketing Department? Assume budgeted usage is used to allocate fixed copying costs and actual

usage is used to allocate variable copying costs.

A) $8,400

B) $9,000

C) $6,000

D) $4,800

E) $6,655

31) If a dual-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for the Operations Department?

A) $28,500

B) $28,200

C) $30,245

D) $29,945

E) $24,600

 

32) If a dual-rate cost-allocation method is used, what amount of copying facility costs will be allocated to the Operations Department? Assume budgeted usage is used to allocate fixed copying costs and actual usage is used to allocate variable copying costs.

A) $30,245

B) $29,945

C) $28,500

D) $28,200

E) $24,600

Answer the following questions using the information below:

 

The Fancy Flier Airplane Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year:

 

Budgeted costs of operating the materials laboratory

for 10,000 to 20,000 technician hours per year:

 

       Fixed costs per year

$600,000

       Variable costs

$80 per technician hour

Budgeted long-run usage in hours per year:

 

       Large Plane Department

9,000 technician hours

       Small Plane Department

7,000 technician hours

 

Budgeted amounts are used to calculate the allocation rates.

 

Actual usage for the year by the Large Plane Department was 6,000 technician hours and by the Small Plane Department was 6,500 technician hours.

 

33) If a single-rate cost-allocation method is used, what is the allocation rate per hour used?

A) $80.00

B) $117.50

C) $146.67

D) $100.00

E) $128.00

 

34) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be budgeted for the Large Plane Department?

A) $1,057,500

B) $822,500

C) $1,880,000

D) $1,600,000

E) $982,500

35) If a single-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Large Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.

A) $1,057,500

B) $822,500

C) $763,750

D) $705,000

E) $1,476,923

 

36) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Large Plane Department? Assume budgeted usage is used to allocate fixed materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.

A) $782,500

B) $817,500

C) $822,500

D) $705,000

E) $996,923

 

37) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be budgeted for the Small Plane Department?

A) $1,057,500

B) $763,750

C) $705,000

D) $822,500

E) $897,500

38) If a dual-rate cost-allocation method is used, what amount of materials laboratory costs will be allocated to the Small Plane Department? Assume budgeted usage is used to allocate materials laboratory costs and actual usage is used to allocate variable materials laboratory costs.

A) $822,500

B) $782,500

C) $817,500

D) $763,750

E) $832,000

 

39) For each of the following cost pools select an appropriate allocation base from the list below if the overall cost object is to assign costs to production departments. Each base can be used only once. Assume a manufacturing company.

 

Cost pools:

a.Vice-president of finance’s office expenses.

b.Computer operations used in conjunction with manufacturing.

c.Personnel department.

d.Manufacturing machinery cost.

e.Energy costs.

 

Allocation bases for which the information system can provide data:

1.Number of employees per department.

2.Employee wages and salaries per department.

3.Production facility square metreage.

4.Hours of operation by production department.

5.Machine hours by department.

6.Machines per department.

7.Operations costs of each department.

8.Hours of computer use per month per department.

9.Indirect labour hours per department.