chapter-7a-master

chapter-7a-master - Chapter 7 Review Questions Master For...

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Chapter 7 – Review Questions – Master For the following question(s) refer to the information below. The managers of Rochester Manufacturing are discussing ways to allocate the cost of service departments such as Quality Control and Maintenance to the production departments. To aid them in this discussion, the controller has provided the following information: (Numbers in Thousands)
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Quality Control Maint. Mach. Assem. Total Budgeted overhead costs before allocation: $350 $200 $400 $300 $1,250 Budgeted machine hours: -- -- 50 -- 50 Budgeted direct labor hours: 25 25 Budgeted hours of service: Quality Control: 5 7 21 7
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If Rochester Manufacturing uses the direct method of allocating service department costs, the total service costs allocated to the assembly department would be: A. $ 80,000 B. $ 87,500 C. $120,000 D. $167,500 E $467,500 Answer: D (167,500 = 87,500 + 80,000) Machinin g Assembl y QC $350,000 $262,500 (21/28 x $350,000 ) $87,500 (7/28 x $350,000 ) Main. $200,000
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This note was uploaded on 04/28/2010 for the course ACCT 260539201 taught by Professor Gardner during the Spring '10 term at UCLA.

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chapter-7a-master - Chapter 7 Review Questions Master For...

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