51) If the step-down method is used to allocate costs, and the Personnel Department renders the greatest service, then the total cost of the Finishing Department after allocation would be

A) $25,000.

B) $39,572.

C) $39,892.

D) $39,357.

County Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing.  Maintenance costs are allocated based on square footage, while personnel costs are allocated based on number of employees.  The following information has been gathered for the current year:

Maintenance

Personnel

Mixing

Finishing

Direct dept. costs

$72,000 

$48,000 

$60,000 

$100,000 

Sq. footage

3,200 

1,600 

6,400 

4,800 

No. of employees

32 

48 

96 

128 

52) If the direct method is used to allocate costs, the total cost of the Mixing Department after allocation would be

A) $121,714.

B) $41,143.

C) $20,571.

D) $60,000.

53) If the direct method is used to allocate costs, the total cost of the Finishing Department after allocation would be

A) $30,857.

B) $27,429.

C) $158,286.

D) $100,000.

54) If the step-down method is used to allocate costs, and the Maintenance Department renders the greatest service, the total amount of overhead that would be allocated from Personnel to Mixing is

A) $20,572.

B) $24,429.

C) $24,000.

D) $36,000.

55) If the step-down method is used to allocate costs, and the Maintenance Department renders the greatest service, then the total amount of overhead that would be allocated from Personnel to Finishing is

A) $24,429.

B) $18,000.

C) $32,571.

D) $27,000.

56) If the step-down method of allocating costs is used, and the Personnel Department renders the greatest service, then the total amount of overhead that would be allocated from Maintenance to Mixing is

A) $18,000.

B) $33,428.

C) $36,000.

D) $44,571.

57) If the step-down method of allocating costs is used, and the Personnel Department renders the greatest service, then the total amount of overhead that would be allocated from Maintenance to Finishing is

A) $24,000.

B) $33,429.

C) $27,000.

D) $32,568.

58) If the step-down method is used to allocate costs, and the Maintenance Department renders the greatest service, then the total cost of the Mixing Department after allocation would be

A) $120,429.

B) $122,571.

C) $121,712.

D) $ 60,000.

59) If the step-down method is used to allocate costs, and the Personnel Department renders the greatest service, then the total cost of the Finishing Department after allocation would be

A) $100,000.

B) $158,288.

C) $159,571.

D) $157,429.

60) Which of the following is the least likely alternative to be used to allocate costs?

A) Use a different cost driver for each cost pool.

B) Allocate all costs evenly to all other departments.

C) Allocate some cost pools using cost drivers and leave other cost pools unallocated.

D



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