FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 22: Performance Measurement and Responsibility Accounting

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Ready Company has two operating (production) departments: Assembly and Painting.Assembly has 150 employees and occupies 44,000 square feet; Painting has 100 employees and occupies 36,000 square feet.Indirect factory expenses for the current period are as follows: Administration is allocated based on workers in each department; maintenance is allocated based on square footage. -The amount of maintenance expenses that should be allocated to the Painting Department for the current period is:

A) $48,000.
B) $55,000.
C) $103,000.
D) $45,000.
E) $110,000.

F) C) and D)
G) A) and C)

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is not a step in creating operating department income statements?

A) Prepare the departmental income statements.
B) Accumulate revenues and direct expenses by department.
C) Allocate indirect expenses across departments.
D) Allocate service department expenses to operating departments.
E) Eliminate the uncontrollable costs for each department.

F) B) and C)
G) C) and D)

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

A granary allocates the cost of unprocessed wheat to the production of feed,flour,and starch.For the current period,unprocessed wheat was purchased for $120,000,and the following quantities of product and sales revenues were produced. How much of the $120,000 cost should be allocated to feed if the value basis is used?

What is the main difference between a cost center and a profit center?

Direct expenses are costs readily traced to a department because they are incurred for that department's sole benefit.

A department can never be considered to be a profit center.

A joint cost of producing two products can be allocated between those products on the basis of the relative physical quantities of each product produced.

A responsibility accounting performance report displays:

Regal Furniture Company allocates its indirect salaries of $22,500 on the basis of sales.Determine the indirect salaries allocated to Departments 1 and 2 using the following information.

Departmental contribution to overhead is calculated as the amount of sales of the department less:

A report that accumulates the actual expenses that a manager is responsible for and their budgeted amounts is a:

Rent and maintenance expenses would most likely be allocated based on:

A unit of a business that generates revenues and incurs costs is called a:

In the two-stage cost allocation,________ costs are allocated to operating departments,and the operating department costs are allocated to ________.

Expenses that are easily traced and assigned to a specific department because they are incurred for the sole benefit of that department are called:

Departmental salary expenses are direct expenses of that department.

Part AR3 costs the Southwestern Division of Luxon Corporation $26 to make-direct materials are $10,direct labor is $4,variable manufacturing overhead is $9,and fixed manufacturing overhead is $3.Southwestern Division sells Part AR3 to other companies for $30.The Northeastern Division of Luxon Corporation can use Part AR3 in one of its products.The Southwestern Division has enough idle capacity to produce all of the units of Part AR3 that the Northeastern Division would require.What is the lowest transfer price at which the Southwestern Division should be willing to sell Part AR3 to the Northeastern Division?

City Park College allocates administrative costs to its teaching departments based on the number of students enrolled,while maintenance and utilities are allocated based on square feet of classrooms.Based on the information below,what is the total amount of expenses allocated to each department (rounded to the nearest dollar)if administrative costs for the college were $180,000,maintenance expenses were $70,000,and utilities were $85,000?

Brownley Company has two service departments and two operating (production) departments.The Payroll Department services all three of the other departments in proportion to the number of employees in each.The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each.Listed below are the operating data for the current period: -The total cost of operating the Milling Department for the current period is:

The following is a partially completed departmental expense allocation spreadsheet for Brickland.It reports the total amounts of direct and indirect expenses for its four departments.Purchasing department expenses are allocated to the operating departments on the basis of purchase orders.Maintenance department expenses are allocated based on square footage.Compute the amount of Maintenance department expense to be allocated to Fabrication.