Question : 8) If the number of employees considered the cost driver, : 1211753

 

8) If the number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A?

A) $35,000

B) $10,667

C) $140,000

D) $43,700

 

9) If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A?

A) $35,000

B) $10,667

C) $143,750

D) $43,700

 

10) Which cost estimation method is being used by Auric Company?

A) the simple regression method

B) the conference method

C) the account analysis method

D) the marginal costing method

Answer the following questions using the information below:

 

At the Verill 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 $200,000.

 

DepartmentABC

Number of employees135530135

Number of engineers08020

 

11) Which cost estimation method is being used by Verill Company?

A) the regression analysis method

B) the marginal costing method

C) the conference method

D) the operating costing 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) $30,000

B) $33,750

C) $0

D) $66,667

 

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) $30,000

B) $33,750

C) $0

D) $66,667

Isondo’s TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.

 

Sales (1,200 televisions)$ 1,200,000

Cost of goods sold540,000

Store manager’s salary per year108,000

Operating costs per year216,000

Advertising and promotion per year24,000

Commissions (3% of sales)36,000

 

14) What was the variable cost per unit sold for 2015?

A) $30

B) $480

C) $770

D) $450

 

15) What were total fixed costs for 2015?

A) $924,000

B) $576,000

C) $348,000

D) $224,000

 

16) What are the estimated total costs if the company expects to sell 3,500 units next year?

A) $2,028,000

B) $3,619,000

C) $3,271,000

D) $1,429,000

17) Which cost estimation method is being used by Isondo’s TV and Appliance Store?

A) the operating costing method

B) the marginal costing method

C) the account analysis method

D) the cost-volume-profit analysis method

 

Answer the following questions using the information below:

 

Genend’s Good Value Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2015 operations.

 

Sales (6,000 microwave ovens)$ 1,740,000

Cost of goods sold960,000

Store manager’s salary per year100,000

Operating costs per year250,000

Advertising and promotion per year30,000

Commissions (3% of sales)52,200

 

 

 

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