Question : 76.Two investment centers at Marshman Corporation have the following current-year : 1258696

 

76.Two investment centers at Marshman Corporation have the following current-year income and asset data: 

InvestmentCenter AInvestmentCenter B

Investment center income$415,000$525,000

Investment center average invested assets$2,400,000$1,950,000

The return on investment (ROI) for Investment Center B is:    

A. 371.4%

B. 26.9%

C. 24.1%

D. 39.2%

E. 21.7%

77.A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $50,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales. 

Department S$110,000

Department T213,750

Department U  151,250

Total$475,000

A. $11,000.

B. $14,000.

C. $16,667.

D. $22,500.

E. $50,000.

78.Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department. 

MaintenanceCuttingAssemblyPackaging

Direct costs$18,000$30,000$70,000$45,000

Sq. ft. of space5001,5002,0002,500

No. of employees23164

A. $500.

B. $4,500.

C. $3,724.

D. $6,000.

E. $4,153.

79.CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service department at CakeCo that incurred $12,000 of costs during the period. If allocated maintenance cost is based on floor space occupied by each of the operating departments, compute the amount of maintenance cost allocated to the Baking Department. 

MixingBakingPackaging

Direct costs$21,000$15,000$9,000

Sq. ft. of space1,0001,500500

A. $400.

B. $1,200.

C. $4,000.

D. $7,500.

E. $6,000.

80.Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: 

Office ExpensesTotalAllocation Basis

Salaries$30,000Number of employees

Depreciation20,000Cost of goods sold

Advertising40,000Net sales

 

ItemDrillingGrindingTotal

Number of employees    1,000    1,500                  2,500

Net sales$325,000$475,000$800,000

Cost of goods sold$75,000$125,000$200,000

The amount of the total office expenses that should be allocated to Grinding for the current period is:  A. $35,750.

B. $45,000.

C. $54,250.

D. $90,000.

E. $600,000.

81.In a firm that manufactures clothing, the department that is responsible for actually assembling the garments could best be described as a(n):    

A. Service department.

B. Operating or production department.

C. Cost center.

D. Department in which all of the costs incurred are direct expenses.

E. Department in which all of the costs incurred are indirect expenses.

82.A company rents a building with a total of 50,000 square feet, which are evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate of space on the second floor. The total monthly rent for the building is $30,000. How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor?    

A. $6,000.

B. $5,000.

C. $3,000.

D. $4,000.

E. $2,000.

83.A company pays $15,000 per period to rent a small building that has 10,000 square feet of space. This cost is allocated to the company’s three departments on the basis of the amount of the space occupied by each. Department One occupies 2,000 square feet of floor space, Department Two occupies 3,000 square feet of floor space, and Department Three occupies 5,000 square feet of floor space. If the rent is allocated based on the total square footage of the space, Department One should be charged rent expense for the period of:    

A. $4,400.

B. $3,000.

C. $4,000.

D. $2,200.

E. $2,000.

12,000

23,000

3    5,000

84.Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000 square feet; Painting has 100 employees and occupies 36,000 square feet. Indirect factory expenses for the current period are as follows: 

Administration$80,000

Maintenance$100,000

Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is:    

A. $48,000.

 

B. $55,000.

C. $103,000.

D. $104,000.

E. $110,000.

85.Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000 square feet; Painting has 100 employees and occupies 36,000 square feet. Indirect factory expenses for the current period are as follows: 

Administration$80,000

Maintenance$100,000

Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of administration expense that should be allocated to the Assembly Department for the current period is:    

A. $48,000.

B. $55,000.

C. $103,000.

D. $104,000.

E. $110,000.

 

 

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