Prac exam ch 5,6,15, contractor

Prac exam ch 5,6,15, contractor -...

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Accounting 3300 Practice Examination Chapters 15, 5, 6 and Contractor Accounting  Instructions: Answer all questions and work all problems on this hard copy, showing your work. When you have  finished your exam, enter answers on chi-tester.  THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 1 THROUGH 4: The Bonawitz Corporation has a central copying facility. The copying facility has only two users, the Marketing  Department and the Operations Department. The following data apply to the coming budget year: Budgeted costs of operating the copying facility for 200,000 to 300,000 copies : Fixed costs per year $30,000 Variable costs  3 cents (.03) per copy Budgeted long-run usage in copies per year : Marketing Department 60,000 copies Operations Department 190,000 copies Budgeted amounts are used to calculate the allocation rates. Actual usage for the year by the Marketing Department was 40,000 copies and by the Operations  Department was 180,000 copies. 1. If a single-rate cost-allocation method is used, what amount of copying facility costs will be  budgeted  for  the Marketing Department? a. $9,000 b. $1,800 c. $7,200 d. $8,400 Answer : a Difficulty : 2 Objective : 1 Terms to Learn : single-rate cost-allocation method [(60,000/ (60,000 + 190,000)) x $30,000] + (60,000 x $0.03) = $9,000
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If a single-rate cost-allocation method is used, what amount of copying facility costs will be  allocated  to  the Marketing Department? Assume actual usage is used to allocate copying costs. a. $8,400 b. $9,000 c. $6,000 d. $4,800 Answer : c Difficulty : 3 Objective : 1 Terms to Learn : single-rate cost-allocation method [(60,000) / (60,000 + 190,000)) x $30,000] + (60,000 x $0.03) = $9,000 $9,000/60,000 copies = $0.15 per copy x 40,000 = $6,000 3. If a dual-rate cost-allocation method is used, what amount of copying facility costs will be budgeted for  the Operations Department? a. $28,500 b. $28,200 c. $30,245 d. $29,945 Answer: a Difficulty: 2 Objective: 1 Terms to Learn: dual-rate cost-allocation method [(190,000) / (60,000 + 190,000)) x $30,000] + (190,000 x $0.03) = $28,500 4. If a dual-rate cost-allocation method is used, what amount of copying facility costs will be allocated to the  Operations Department? Assume budgeted usage is used to allocate fixed copying costs and actual  usage is used to allocate variable copying costs. a. $30,245 b. $29,945 c. $28,500 d. $28,200 Answer: d Difficulty: 3 Objective: 1 Terms to Learn: dual-rate cost-allocation method [(190,000) / (60,000 + 190,000)) x $30,000] + (180,000 x $0.03) = $28,200 5. Which of the following is NOT one of the three methods of allocating support department costs to  operating departments? a.
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Prac exam ch 5,6,15, contractor -...

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