MAQuiz10 - ACG 2071 Quiz Name UFID Gator University has two...

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ACG 2071 Quiz Name____________________________________ November 13, 2007 UFID#______________________________ Gator University has two support units, Facility Support (FS) and Central Administration (CA), and two colleges, Liberal Arts (LA) and Professional Studies (PS). Facility Support (FS) costs are allocated based on square footage while Central Administration costs are allocated based on number of employees. The budget for the current year includes: FS CA LA PS Direct costs $585,000 $840,000 $6,000,000 $2,300,000 Square footage 8,000 4,000 16,000 10,000 Number of employees 12 8 70 30 1. Calculate the total budgeted direct and allocated cost for Liberal Arts (LA) under the direct allocation method. 2. Under the step-down allocation method the Facility Support (FS) costs are allocated first followed by the Central Administration (CA) costs. Calculate the total budgeted direct and allocated cost for Professional Studies (PS) under the step-down allocation method. Continue Gator University: The actual direct costs of Central Administration (CA) during the current year were $768,800 including $500,000 of fixed costs. The actual number of employees in Liberal Arts (LA) and Professional Studies (PS) were 66 and 30, respectively. Assume that actual fixed costs are allocated based on the capacity to serve reflected by the budgeted number of employees (above) and actual variable costs are allocated based on the actual number of employees. 3. Calculate the total actual Central Administrative (CA) costs allocated to Liberal Arts (LA). Gator Company manufactures standard and deluxe models of a product. Three activities (A, B and C) have been identified along with the cost drivers and the related overhead costs pools for each activity: Activity A Activity B Activity C Cost drivers Setups Components Labor hours Standard model 26 8 400 Deluxe model 34 12 200 Costs per pool $15,000 $40,000 $12,000 4. Calculate the total overhead cost assigned to the deluxe model using activity-based costing . Gator Inc. processes a joint input into two products, A and B. The joint input cost is $10 per pound and the joint conversion (labor and overhead) costs are $15 per pound. Gator Inc. plans to produce 50,000 pounds of A and 30,000 pounds of B from 80,000 pounds of the joint input. Product A cannot be sold at the split-off point and must be processed further at a cost of $300,000 in order to be sold for $42 per pound.Product B sells for $40 per pound at the split-off point 5. Calculate the joint cost allocated to product A using the net realizable value allocation method .
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