Chapter 15 - Chapter1 5 36 C 3 7 eachcostpoolintoa B 38...

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Chapter 15 36) The method that allocates costs in each cost pool using the same rate per unit is known as the: C) single-rate cost allocation method 37) The dual-rate cost-allocation method classifies costs in each cost pool into a: B) variable-cost pool and a fixed-cost pool 38) The single-rate cost-allocation method may base the denominator choice on: A) master-budget capacity utilization B) normal capacity utilization C) practical capacity 39) When using the single-rate method, fixed cost allocation may be based on: A) actual usage B) budgeted usage 40)
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Benefits of the single-rate method include: A) the low cost of implementation 41) Benefits of the dual-rate method include: D) information that leads to outsourcing decisions that benefit the organization as a whole 42) The advantage of using practical capacity to allocate costs: B) is that it focuses management's attention on managing unused capacity Answer the following questions using the information below: 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 Department60,000 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.
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43) 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 44) 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. C) $6,000 用用用 budget 用 rate 用用用用 actual 用 hours 45) 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 46) 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. D) $28,200 Answer the following questions using the information below:
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The Fancy Flier Airplane Corporation has a central materials laboratory. The laboratory has only two users, the Large Plane Department and the Small Plane Department. The following data apply to the coming budget year: Budgeted costs of operating the materials laboratory for 10,000 to 20,000 technician hours per year: Fixed costs per year $600,000 Variable costs $80 per technician hour Budgeted long-run usage in hours per year: Large Plane Department 9,000 technician hours Small Plane Department 7,000 technician hours Budgeted amounts are used to calculate the allocation rates.
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