Question :
Answer the following questions using the information below:
At the : 1216901
Answer the following questions using the information below:
At the Todd Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $320,000.
DepartmentABC
Number of employees30270100
The number of new hires8125
8) If the number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A?
A) $24,000
B) $10,667
C) $102,400
D) $40,000
9) If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A?
A) $24,000
B) $10,667
C) $102,400
D) $40,000
10) Which cost estimation method is being used by Todd Company?
A) the industrial engineering method
B) the conference method
C) the account analysis method
D) the quantitative analysis method
Answer the following questions using the information below:
At the Christopher Company, the cost of the library and information center has always been charged to the various departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs.
Total library and information center costs are $150,000.
DepartmentABC
Number of employees125500125
The number of engineers07525
11) Which cost estimation method is being used by Christopher Company?
A) the quantitative analysis method
B) the industrial engineering method
C) the conference method
D) the account analysis method
12) If the number of employees is considered the cost driver, what amount of library and information center costs will be allocated to Department A?
A) $100,000
B) $25,000
C) $0
D) $112,500
13) If the number of engineers is considered the cost driver, what amount of library and information center costs will be allocated to Department A?
A) $100,000
B) $25,000
C) $0
D) $112,500
Answer the following questions using the information below:
Jerry’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2011 operations.
Sales (1,000 televisions)$ 900,000
Cost of goods sold400,000
Store manager’s salary per year70,000
Operating costs per year157,000
Advertising and promotion per year15,000
Commissions (4% of sales)36,000
14) What was the variable cost per unit sold for 2011?
A) $36
B) $436
C) $678
D) $400
15) What were total fixed costs for 2011?
A) $678,000
B) $436,000
C) $242,000
D) $227,000
16) What are the estimated total costs if Penny’s expects to sell 3,000 units next year?
A) $1,550,000
B) $1,332,000
C) $1,671,000
D) $1,453,000
17) Which cost estimation method is being used by Jerry’s TV and Appliance Store?
A) the industrial engineering method
B) the conference method
C) the account analysis method
D) the quantitative analysis method
