31) The amount of variable maintenance costs allocated to the Cutting Department should be

A) $80,000.

B) $96,000.

C) $64,000.

D) $83,333.

32) The amount of variable maintenance costs allocated to the Assembling Department should be

A) $56,000.

B) $64,000.

C) $50,000.

D) $48,000.

33) To allocate central costs, a company could use all of the following cost drivers EXCEPT the

A) revenue of each division.

B) cost of goods sold by each division.

C) total assets of each division.

D) total period costs of each division.

Stohr Company has two departments, New and Old.  Central costs are allocated to the two departments in various ways.  Relevant information is presented below:

New

Old  

Square footage

4,000

12,000

Number of employees

560

240

Sales

$800,000

$4,000,000

34) If total advertising expense is $240,000 and it is allocated on the basis of sales, the amount allocated to the New Department should be

A) $40,000.

B) $60,000.

C) $168,000.

D) $200,000.

35) If total advertising expense is $120,000 and it is allocated on the basis of sales, the amount allocated to the Old Department should be

A) $90,000.

B) $36,000.

C) $100,000.

D) $ 20,000.

36) If total payroll processing costs are $64,000 and they are allocated on the basis of number of employees, the amount allocated to the New Department should be

A) $44,800.

B) $16,000.

C) $10,667.

D) $19,200.

37) If total payroll processing costs are $40,000 and they are allocated on the basis of number of employees, the amount allocated to the Old Department should be

A) $28,000.

B) $12,000.

C) $30,000.

D) $33,333.

38) If total rent expense is $80,000 and it is allocated on the basis of square footage, the amount allocated to the New Department should be

A) $13,333.

B) $20,000.

C) $56,000.

D) $60,000.

39) If total rent expense is $192,000 and it is allocated on the basis of square footage, the amount allocated to the Old Department should be

A) $57,600.

B) $160,000.

C) $144,000.

D) $48,000.

40) Which of the following departments is NOT a service department?

A) Facilities management

B) Personnel

C) Accounting

D) Finishing



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