# Quiz07 - Quiz Chapter 7 Use the following to answer...

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Page 1 Quiz – Chapter 7 Use the following to answer questions 1-4: The Uinta Company has two service departments and two operating departments. The following data are available from last year: Service Depts. Operating Depts. 1 2 X Y Departmental costs. ....... \$63,000 \$42,000 \$200,000 \$100,000 Number of transactions. 10,000 12,000 14,000 16,000 Square feet occupied. .... 2,000 1,000 3,000 2,000 The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied respectively. No distinction is made between fixed and variable costs. 1. Assuming that Uinta allocates service department costs by the direct method, the total overhead costs allocated from Department 1 to Department X are: A) \$18,000. B) \$25,200. C) \$42,000. D) \$29,400. 2. Assuming that Uinta allocates service department costs by the direct method, the total overhead costs allocated from Department 2 to Department Y are: A) \$22,400. B) \$16,800. C) \$42,000. D) \$14,000. 3. Assume that Uinta allocates service department costs by the step method, starting with Department 1. The total overhead costs allocated from Department 1 to Department Y are: A) \$12,115. B) \$21,000. C) \$24,000.

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## This note was uploaded on 04/25/2009 for the course ACCY 260 taught by Professor Yu during the Spring '09 term at American College of Computer & Information Sciences.

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Quiz07 - Quiz Chapter 7 Use the following to answer...

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