Question :
111. Yoho Company reported the following financial numbers for one of : 1225572
111. Yoho Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Assume a target income of 15% of average invested assets. Compute residual income for the division:
A. $150,450.
B. $196,750.
C. $150,500.
D. $133,000.
E. $100,300.
112. The following is taken from Ames Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor costs, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead allocated to Dept.1 using activity-based costing.
A. $18,720.
B. $12,930.
C. $13,400.
D. $19,190.
E. $19,440.
113. The following is taken from Ames Company’s internal records of its factory with two operating departments. The cost driver for indirect labor is direct labor costs, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of overhead allocated to Dept.2 using activity-based costing.
A. $18,720.
B. $12,930.
C. $13,400.
D. $19,190.
E. $19,440.
114. Belgrade Lakes Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $95,000 each; 125 are street frontage lots and will sell for $65,000. The developer acquired the land for $1,800,000 and spent another $1,400,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using value basis.
A. $1,724,800.
B. $1,777,920.
C. $2,018,920.
D. $1,422,080.
E. $1,475,200.
115. Belgrade Lakes Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $95,000 each; 125 are street frontage lots and will sell for $65,000. The developer acquired the land for $1,800,000 and spent another $1,400,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the street frontage lots using value basis.
A. $1,724,800.
B. $1,777,920.
C. $2,018,920.
D. $1,422,080.
E. $1,475,200.
116. The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Purchasing department expense to be allocated to Fabrication.
A. $6,400.
B. $9,900.
C. $8,100.
D. $17,600.
E. $25,600.
117. The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Purchasing department expense to be allocated to Assembly.
A. $6,400.
B. $9,900.
C. $8,100.
D. $14,400.
E. $25,600.
118. The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication.
A. $6,400.
B. $9,900.
C. $8,100.
D. $9,000.
E. $25,600.
119. The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication.
A. $6,400.
B. $9,900.
C. $8,100.
D. $9,000.
E. $25,600.
