Chapter 15 test bank with answers Horngren\'s Cost Accounting: A Managerial Emphasis, 16th Global Edition PDF

Preview

Summary

Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren)Chapter 15 Allocation of Support-Department Costs, CommonCosts, and Revenues15 Objective 15. The method that allocates costs in each cost pool using the same rate per unit is known as the ________. A) incremental cost-allocation m...

Description

Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren) Cha pt e r1 5 Al l oc a t i onofSuppor t De pa r t mentCos t s , CommonCos t s ,a ndRev e nue s 1 5 . 1 Obj e c t i ve1 5 . 1 1 )Theme t hodt ha ta l l oc a t e sc os t si ne a c hc os tpoolus i ngt hes a mer a t epe runi ti sknowna st he_ _ __ _ __ _ . A)i nc r e me nt alc os t al l oc a t i onme t hod B)r e c i pr oc a lc os t a l l oc a t i onme t hod C)s i ngl e r a t ec os ta l l oc a t i onme t hod D)dual r a t ec os t a l l oc a t i onme t hod Ans we r :C Di ff: 1 Obj e c t i ve :1 AACS B:Anal yt i c alt hi nki ng

2 )Thedua l r a t ec os t a l l oc a t i onme t hodc l a s s i fie sc os t si ne a c hc os tpooli nt oa__ _ __ _ _ _. A)budge t e dc os tpoola nda nac t ual c os tpool B)va r i a bl e c os tpoola ndafix e dc os tpool C)di r e c t c os tpoola ndani ndi r e c t c os tpool D)di r e c t c os tpoolandar e c i pr oc a l c os tpool Ans we r :B Di ff: 1 Obj e c t i ve :1 AACS B:Anal yt i c alt hi nki ng

3 )Whi c hoft hef ol l owi ngde pa r t me nt swoul dnotbec ons i de r e das e r vi c eors uppor tde par t me nt ? A)as s e mbl y B)i nf or ma t i ons ys t e ms C)s hi ppi ng D)pl a ntma i nt e na nc e Ans we r :A Di ff: 2 Obj e c t i ve :1 AACS B:Anal yt i c alt hi nki ng

4 )Whe nus i ngt hedua l r a t eme t hod, t hefix e dc os tal l oc a t i oni sbas e don_ __ _ __ _ _. A)ac t ualr a t e B)budge t e dus a ge C)i nc r e me nt alc os ta l l oc a t i on D)pr i mec os tal l oc a t i on Ans we r :B Di ff: 1 Obj e c t i ve :1 AACS B:Anal yt i c alt hi nki ng

1 Copyright © 2018 Pearson Education, Inc.

5 )Cons i de rt hef ol l owi ngi nf or ma t i ona t t r i but e dt ot hema t e r i a lma na ge me ntde pa r t me nt Budge t e dus a geofma t e r i al s handl i ngl a bor hour s35 0 0 Budge t e dc os tpool s : Fi x e dc os t s$1 5 4, 00 0 Var i a bl ec os t s$ 12 6 , 00 0( 3 50 0hour sx$ 3 6pe rhour ) Thec ompa nyus e st hes i ngl e r a t eme t hodt oal l oc a t es uppor tc os t st ot heMa c hi ni ngandAs s e mbl y De pa r t me nt s .As s umi ngt ha tt hea c t ua lhour st r a c ke di nt heMa c hi ni nga ndAs s e mbl yde par t me ntar e 5 0 0f ort hemont h,wha twoul dbet heal l oc a t i onr a t ea ndhow muc hc os twoul dbeal l oc a t e dt ot he Mac hi ni ngandAs s e mbl yDe pa r t me ntf ort heope r a t i onsoft hemont h?( Roundfina la ns we r st ot he ne a r e s tdol l ar . ) A)$8 0anhourf orat ot alof$4 0 , 00 0 B)$ 36a nhourf orat ot alof$ 40 , 0 00 C)$3 6a nhourf orat ot a lof$ 18 , 0 0 0 D)$ 56 0anhourf orat ot alof$ 80 Ans we r :A Expl ana t i on:Fi x e dc os t spe rhour :$ 15 4 , 0 00/35 0 0=$4 4pe rhour Al l oc a t i onr a t e :$ 36+$ 4 4=$ 80pe rhour Cos tal l oc a t e dt ode pa r t me nt :$8 0pe rhourx50 0hour s=$ 40 , 0 0 0 Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c alt hi nki ng

6 )Whi c hoft hef ol l owi ngi sadi s advant a geofs i ngl e r a t eme t hod? A)I ti sve r yc os t l yt oi mpl e me nt . B)I tma yl e a dope r a t i ngde par t me ntma na ge r st oma kes ubopt i ma lde c i s i onst ha tar ei nt he i rownbe s t i nt e r e s t . C)I tdoe snots i gna lt ode par t me ntma na ge r show var i a bl ec os t sandfix e dc os t sbe ha v edi ffe r e nt l y . D)I tr e qui r e sma na ge r st odi s t i ngui s hva r i abl ec os t sf r om fix e dc os t s ,whi c hi sof t e nac hal l e ngi ngt a s k. Ans we r :B Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c alt hi nki ng

7 )Whi c hoft hef ol l owi ngi sanadva nt a geofadua l r a t eme t hod? A)I ti st hemos twi de l yus e dme t hodi npr a c t i c e . B)I ti sl e s sc os t l yt oi mpl e me nt . C)I ta v oi dst hee xpe ns i vea nal ys i sf orc a t e gor i zi ngc os t sase i t he rfix e dorva r i a bl e . D)I ta l l oc a t e sfix e dc os ta spe rt hebudge t e dus a get ha the l psi ns hor ta ndl ongr unpl a nni ng. Ans we r :D Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c alt hi nki ng

2 Copyright © 2018 Pearson Education, Inc.

8 )Whi c hoft hef ol l owi ngi sadi s advant a geofadua l r a t eme t hod? A)I ta l l oc a t e sfix e dc os t sont hebas i sofbudge t e dl ongr unus a ge ,whi c hma yt e mpts omema na ge r st o unde r e s t i ma t et he i rpl a nne dus a ge . B)I tma yl e a dope r a t i ngde par t me ntma na ge r st oma kes ubopt i ma lde c i s i onst ha tar ei nt he i rownbe s t i nt e r e s t . C)I tal l oc a t e sfix e da ndva r i a bl e c os tpoolus i ngt hes a mec os t a l l oc a t i onba s e ,whi c hwi l lmi s l e a d mana ge r si nma ki ngde c i s i ons . D)I tdoe snotgui dede par t me ntma na ge r st oma kede c i s i onst ha tbe ne fitbot ht heor ga ni z a t i onasawhol e a nde a c hde par t me nt . Ans we r :A Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c alt hi nki ng

9 )Whi c hoft hef ol l owi ngi sanadva nt a geofus i ngpr ac t i c a lc a pa c i t yt oa l l oc a t ec os t s ? A)i st ha ti ta l l owsadownwar ds uppl ys pi r a lt ode ve l op B)i st ha ti tf oc us e sma na ge me nt ' sa t t e nt i ononma na gi ngunus e dc a pa c i t y C)i st ha tbudge t sar emuc he a s i e rt ode v e l op D)i st ha ti tr e s ul t si nde pa r t me nt sbe a r i ngal owe rpe r c e nt a geoffix e dc os t s Ans we r :B Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c alt hi nki ng

1 0 )Whi c hoft hef ol l owi ngwoul dbec ons i de r e dt hebi gge s tadvant a geofus i ngpr a c t i c a lc a pa c i t yt o a l l oc a t ec os t s ? A)f oc us e st heus e r ' sdi vi s i onwi t ht hec os t sofove r us e dc apa c i t y B)ne ve rc a us e sove rorunde r al l oc a t e dove r he a d C)bur de nst heus e rdi vi s i onswi t ht hec os t sofunus e dc a pa c i t y D)f oc us e smana ge me nt ' sa t t e nt i ononunus e dc a pac i t y Ans we r :D Di ff: 2 Obj e c t i ve :1 AACSB:Ana l yt i c alt hi nki ng

3 Copyright © 2018 Pearson Education, Inc.

1 1 )TheCha r ma t zCor por a t i onhasac e nt r a lc opyi ngf ac i l i t y .Thec opyi ngf a c i l i t yha sonl yt wous e r s ,t he Mar ke t i ngDe pa r t me ntandt heOpe r a t i onsDe pa r t me nt .Thef ol l owi ngda t aappl yt ot hec omi ngbudge t ye a r : Bud g e t e dc o s t so fo p e r a t i ngt h ec o py i ngf a c i l i t y f o r3 00 , 0 0 0t o5 00 , 0 0 0c o pi e s : Fi x e dc os t spe rye ar Var i a bl ec os t s Bud g e t e dl o ng r unus a g ei nc o p i e spe ry e a r : Mar ke t i ngDe pa r t me nt Ope r a t i onsDe par t me nt

$ 6 1, 0 0 0 6c e nt s( 0. 0 6 ) pe rc opy 1 0 0, 0 0 0 c opi e s 4 0 0, 0 0 0 c opi e s

Budge t e da mount sa r eus e dt oc a l c ul a t et hea l l oc a t i onr a t e s . Ac t ua lus a gef ort heye arbyt heMar ke t i ngDe par t me ntwa s8 0, 00 0c opi e sandbyt heOpe r a t i ons De pa r t me ntwa s3 20 , 0 0 0c opi e s .I fas i ngl e r a t ec os t al l oc a t i onme t hodi sus e d,wha tamountofc opyi ng f ac i l i t yc os t swi l lbebudge t e df ort heMa r ke t i ngDe pa r t me nt ?( Rounda nyi nt e r me di a r yc a l c ul a t i onst ot he ne a r e s tc e nt . ) A)$1 8 , 20 0 B)$ 60 0 0 C)$1 2 , 2 00 D)$ 21 , 2 50 Ans we r :A Expl ana t i on:5 00 , 0 00t ot a lc opi e sbudge t e dx$0 . 0 6=$3 0 , 0 00ofvar i a bl ec os t+$ 61 , 0 0 0offix e dc os t= $ 9 1, 0 0 0. Tot albudge dc os tof$ 91 , 0 00 /50 0 , 0 00t ot a lc opi e si sas i ngl eal l oc a t i onr a t eof0 . 18pe rc opy . I ft hema r ke t i ngde par t me ntpl a nsonmaki ng8 0, 0 0 0c opi e s ,t hea l l oc a t e dbudge t e da mountf orc opi e s woul dbe1 00 , 0 0 0x$0 . 1 8=$1 8 , 20 0 . [ ( 1 0 0, 0 0 0/( 10 0 , 00 0+4 0 0, 00 0 ) )×$6 1 , 00 0 ]+( 1 00 , 0 0 0×$0 . 0 6)=$ 1 8, 2 0 0 Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

4 Copyright © 2018 Pearson Education, Inc.

1 2 )TheCha r ma t zCor por a t i onhasac e nt r a lc opyi ngf ac i l i t y .Thec opyi ngf a c i l i t yha sonl yt wous e r s ,t he Mar ke t i ngDe pa r t me ntandt heOpe r a t i onsDe pa r t me nt .Thef ol l owi ngda t aappl yt ot hec omi ngbudge t ye a r : Bud g e t e dc o s t so fo p e r a t i ngt h ec o py i ngf a c i l i t y f o r3 00 , 0 0 0t o5 00 , 0 0 0c o pi e s : Fi x e dc os t spe rye ar Var i a bl ec os t s Bud g e t e dl o ng r unus a g ei nc o p i e spe ry e a r : Mar ke t i ngDe pa r t me nt Ope r a t i onsDe par t me nt

$ 6 9, 0 0 0 3c e nt s( 0. 0 3 ) pe rc opy 1 0 0, 0 0 0 c opi e s 3 6 0, 0 0 0 c opi e s

Budge t e da mount sa r eus e dt oc a l c ul a t et hea l l oc a t i onr a t e s . Ac t ua lus a gef ort heye arbyt heMar ke t i ngDe par t me ntwa s7 0, 00 0c opi e sandbyt heOpe r a t i ons De pa r t me ntwa s3 30 , 0 0 0c opi e s .I fas i ngl e r a t ec os t al l oc a t i onme t hodi sus e d,wha tamountofc opyi ng f ac i l i t yc os t swi l lbea l l oc a t e dt ot heMar ke t i ngDe par t me nt ?As s umeac t ua lus a gei sus e dt oal l oc a t e c opyi ngc os t s .( Donotr oundi nt e r i mc al c ul a t i onsandr oundt hefinalc a l c ul a t i ont ot hene a r e s tdol l ar . ) A)$2 0 , 25 0 B)$ 18 , 0 0 0 C)$1 2 , 6 00 D)$ 21 0 0 Ans we r :C Expl ana t i on:[ ( 1 00 , 0 00 )/( 1 00 , 0 0 0+3 60 , 0 00 ) )×$ 69 , 0 0 0]+( 10 0 , 0 00×$ 0 . 03 )=$1 8 , 00 0 $ 1 8, 0 0 0/10 0 , 00 0c opi e s=$ 0. 18pe rc opy×70 , 0 00=$ 1 2, 60 0 Di ff: 3 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

5 Copyright © 2018 Pearson Education, Inc.

1 3 )TheCha r ma t zCor por a t i onhasac e nt r a lc opyi ngf ac i l i t y .Thec opyi ngf a c i l i t yha sonl yt wous e r s ,t he Mar ke t i ngDe pa r t me ntandt heOpe r a t i onsDe pa r t me nt .Thef ol l owi ngda t aappl yt ot hec omi ngbudge t ye a r : Bud g e t e dc o s t so fo p e r a t i ngt h ec o py i ngf a c i l i t y f o r4 00 , 0 0 0t o6 00 , 0 0 0c o pi e s : Fi x e dc os t spe rye ar Var i a bl ec os t s Bud g e t e dl o ng r unus a g ei nc o p i e spe ry e a r : Mar ke t i ngDe pa r t me nt Ope r a t i onsDe par t me nt

$ 6 4, 0 0 0 5c e nt s( 0. 0 5 ) pe rc opy 9 0 , 00 0 c opi e s 3 1 0, 0 0 0 c opi e s

Budge t e da mount sa r eus e dt oc a l c ul a t et hea l l oc a t i onr a t e s . Ac t ua lus a gef ort heye arbyt heMar ke t i ngDe par t me ntwa s1 20 , 0 0 0c opi e sandbyt heOpe r a t i ons De pa r t me ntwa s3 80 , 0 0 0c opi e s .I fadua l r a t ec os t al l oc a t i onme t hodi sus e d,wha tamountofc opyi ng f ac i l i t yc os t swi l lbebudge t e df ort heOpe r a t i onsDe par t me nt ? A)$6 5 , 10 0 B)$ 68 , 6 0 0 C)$6 4 , 1 40 D)$ 67 , 6 40 Ans we r :A Expl ana t i on:[ ( 3 10 , 0 00 )/( 9 0, 00 0+3 1 0, 0 0 0) )×$6 4 , 0 00 ]+( 3 10 , 0 0 0×$0 . 0 5)=$ 6 5, 10 0 Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

6 Copyright © 2018 Pearson Education, Inc.

1 4 )TheCha r ma t zCor por a t i onhasac e nt r a lc opyi ngf ac i l i t y .Thec opyi ngf a c i l i t yha sonl yt wous e r s ,t he Mar ke t i ngDe pa r t me ntandt heOpe r a t i onsDe pa r t me nt .Thef ol l owi ngda t aappl yt ot hec omi ngbudge t ye a r : Bud g e t e dc o s t so fo p e r a t i ngt h ec o py i ngf a c i l i t y f o r3 00 , 0 0 0t o5 00 , 0 0 0c o pi e s : Fi x e dc os t spe rye ar Var i a bl ec os t s Bud g e t e dl o ng r unus a g ei nc o p i e spe ry e a r : Mar ke t i ngDe pa r t me nt Ope r a t i onsDe par t me nt

$ 6 6, 0 0 0 5c e nt s( 0. 0 5 ) pe rc opy 1 1 0, 0 0 0 c opi e s 3 9 0, 0 0 0 c opi e s

Budge t e da mount sa r eus e dt oc a l c ul a t et hea l l oc a t i onr a t e s . Ac t ua lus a gef ort heye arbyt heMar ke t i ngDe par t me ntwa s1 20 , 0 0 0c opi e sandbyt heOpe r a t i ons De pa r t me ntwa s3 60 , 0 0 0c opi e s .I fadua l r a t ec os t al l oc a t i onme t hodi sus e d,wha tamountofc opyi ng f ac i l i t yc os t swi l lbea l l oc a t e dt ot heOpe r a t i onsDe pa r t me nt ?As s umebudge t e dus a gei sus e dt oal l oc a t e fix e dc opyi ngc os t sandac t ualus a gei sus e dt oal l oc a t eva r i a bl ec opyi ngc os t s . A)$6 9 , 00 0 B)$ 11 7 , 0 00 C)$7 0 , 9 80 D)$ 69 , 4 80 Ans we r :D Expl ana t i on:[ ( 3 90 , 0 00 )/( 1 10 , 0 0 0+3 90 , 0 00 ) )×$ 66 , 0 0 0]+( 36 0 , 0 00×$ 0 . 05 )=$6 9 , 48 0 Di ff: 3 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

7 Copyright © 2018 Pearson Education, Inc.

1 5 )TheSpe e dj e tAi r c r af tCor por a t i onhasac e nt r a lma t e r i a l sl a bor a t or y .Thel a bor a t or yha sonl yt wo us e r s ,t heLa r gePl a neDe pa r t me nta ndt heSma l lPl a neDe par t me nt .Thef ol l owi ngda t aappl yt ot he c omi ngbudge tye a r : Budge t e dc os t sofope r a t i ngt hema t e r i a l sl a bor a t or y f or1 5 0, 0 0 0t o25 0 , 00 0t e c hni c i anhour spe rye a r : Fi x e dc os t spe rye ar $ 8 , 40 0 , 00 0 Var i a bl ec os t s $ 6 8 pe rt e c hni c i anhour Budge t e dl ongr unus a gei nhour spe rye ar : La r gePl a neDe par t me nt 9 0 , 00 0 t e c hni c i anhour s Smal lPl aneDe par t me nt 1 6 0, 0 0 0 t e c hni c i a nhour s Budge t e da mount sa r eus e dt oc a l c ul a t et hea l l oc a t i onr a t e s . Ac t ua lus a gef ort heye arbyt heLa r gePl a neDe par t me ntwas7 0, 0 0 0t e c hni c i a nhour sandbyt heSmal l Pl a neDe pa r t me ntwa s90 , 0 0 0t e c hni c i anhour s .I fas i ngl e r a t ec os t al l oc a t i onme t hodi sus e d,wha ti st he a l l oc a t i onr a t epe rhourus e d?( Roundt hefinala ns we rt ot hene a r e s tdol l ar . ) A)$1 2 0. 50 B)$ 10 1 . 6 0 C)$1 5 8 . 75 D)$ 77 . 1 2 Ans we r :B Expl ana t i on:Al l oc a t i onr a t epe rhour=( $8 , 4 00 , 0 0 0+( 25 0 , 00 0hour s×$ 6 8) ) /2 50 , 0 00hour s=$1 0 1. 60 / pe rhourus e d Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

8 Copyright © 2018 Pearson Education, Inc.

1 6 )TheSpe e dj e tAi r c r af tCor por a t i onhasac e nt r a lma t e r i a l sl a bor a t or y .Thel a bor a t or yha sonl yt wo us e r s ,t heLa r gePl a neDe pa r t me nta ndt heSma l lPl a neDe par t me nt .Thef ol l owi ngda t aappl yt ot he c omi ngbudge tye a r : Budge t e dc os t sofope r a t i ngt hema t e r i a l sl a bor a t or y f or1 5 0, 0 0 0t o25 0 , 00 0t e c hni c i anhour spe rye a r : Fi x e dc os t spe rye ar $ 8 , 60 0 , 00 0 Var i a bl ec os t s $ 7 5 pe rt e c hni c i anhour Budge t e dl ongr unus a gei nhour spe rye ar : La r gePl a neDe par t me nt 9 0 , 00 0 t e c hni c i anhour s Smal lPl aneDe par t me nt 1 6 0, 0 0 0 t e c hni c i a nhour s Budge t e da mount sa r eus e dt oc a l c ul a t et hea l l oc a t i onr a t e s . Ac t ua lus a gef ort heye arbyt heLa r gePl a neDe par t me ntwas7 0, 0 0 0t e c hni c i a nhour sandbyt heSmal l Pl a neDe pa r t me ntwa s90 , 0 0 0t e c hni c i anhour s .I fadua l r a t ec os t a l l oc a t i onme t hodi sus e d,wha ta mount ofma t e r i a l sl a bor a t or yc os t swi l lbebudge t e df ort heLa r gePl a neDe par t me nt ? A)$9 , 8 46 , 0 0 0 B)$ 9, 01 2 , 50 0 C)$7 , 6 5 8, 0 0 0 D)$ 11 , 5 87 , 5 0 0 Ans we r :A Expl ana t i on:Thefix e dc os ta l l oc a t i onr a t ei s$ 3 4. 40( $ 8, 60 0 , 00 0/( 9 0, 00 0+1 60 , 0 00 )whi l et heva r i a bl er a t e i s$ 7 5. Budge t e dma t e r i al sl a bor a t or yc os t sf orLar gePl a neDe pa r t me nt=( $ 34 . 4 0+$7 5 )x9 0, 00 0=$ 9, 84 6 , 00 0 Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

9 Copyright © 2018 Pearson Education, Inc.

1 7 )TheSpe e dj e tAi r c r af tCor por a t i onhasac e nt r a lma t e r i a l sl a bor a t or y .Thel a bor a t or yha sonl yt wo us e r s ,t heLa r gePl a neDe pa r t me nta ndt heSma l lPl a neDe par t me nt .Thef ol l owi ngda t aappl yt ot he c omi ngbudge tye a r : Budge t e dc os t sofope r a t i ngt hema t e r i a l sl a bor a t or y f or1 0 0, 0 0 0t o20 0 , 00 0t e c hni c i anhour spe rye a r : Fi x e dc os t spe rye ar $ 7 , 40 0 , 00 0 Var i a bl ec os t s $ 7 5 pe rt e c hni c i anhour Budge t e dl ongr unus a gei nhour spe rye ar : La r gePl a neDe par t me nt 8 0 , 00 0 t e c hni c i anhour s Smal lPl aneDe par t me nt 1 2 0, 0 0 0 t e c hni c i a nhour s Budge t e da mount sa r eus e dt oc a l c ul a t et hea l l oc a t i onr a t e s . Ac t ua lus a gef ort heye arbyt heLa r gePl a neDe par t me ntwas6 0, 0 0 0t e c hni c i a nhour sandbyt heSmal l Pl a neDe pa r t me ntwa s80 , 0 0 0t e c hni c i anhour s .I fas i ngl e r a t ec os t al l oc a t i onme t hodi sus e d,wha t a mountofma t e r i a l sl a bor a t or yc os t swi l lbeal l oc a t e dt ot heLa r gePl a neDe pa r t me nt ?As s umeac t ua l us a gei sus e dt oa l l oc a t el a bor a t or yc os t s . A)$1 0 , 22 8 , 5 71 . 4 B)$ 8, 96 0 , 00 0 C)$7 , 6 7 1, 4 2 9 D)$ 6, 72 0 , 00 0 Ans we r :D Expl ana t i on:( $ 7, 40 0 , 00 0+( 2 00 , 0 00hour s×$7 5 ) ) /2 00 , 0 00hour s=$ 11 2 . 00/pe rhourus e d 6 0 , 00 0=$6 , 7 2 0, 0 0 0 Di ff: 3 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

10 Copyright © 2018 Pearson Education, Inc.

1 8 )TheSpe e dj e tAi r c r af tCor por a t i onhasac e nt r a lma t e r i a l sl a bor a t or y .Thel a bor a t or yha sonl yt wo us e r s ,t heLa r gePl a neDe pa r t me nta ndt heSma l lPl a neDe par t me nt .Thef ol l owi ngda t aappl yt ot he c omi ngbudge tye a r : Budge t e dc os t sofope r a t i ngt hema t e r i a l sl a bor a t or y f or1 5 0, 0 0 0t o25 0 , 00 0t e c hni c i anhour spe rye a r : Fi x e dc os t spe rye ar $ 8 , 00 0 , 00 0 Var i a bl ec os t s $ 7 0 pe rt e c hni c i anhour Budge t e dl ongr unus a gei nhour spe rye ar : La r gePl a neDe par t me nt 9 0 , 00 0 t e c hni c i anhour s Smal lPl aneDe par t me nt 70 , 0 00 t e c hni c i a nhour s Budge t e da mount sa r eus e dt oc a l c ul a t et hea l l oc a t i onr a t e s . Ac t ua lus a gef ort heye arbyt heLa r gePl a neDe par t me ntwas8 0, 0 0 0t e c hni c i a nhour sandbyt heSmal l Pl a neDe pa r t me ntwa s12 0 , 0 00t e c hni c i a nhour s .I fadua l r a t ec os t al l oc a t i onme t hodi sus e d,wha t a mountofma t e r i a l sl a bor a t or yc os t swi l lbeal l oc a t e dt ot heLa r gePl a neDe pa r t me nt ?As s umebudge t e d us a gei sus e dt oa l l oc a t efix e dma t e r i a l sl a bor a t or yc os t sa nda c t ua lus a gei sus e dt oal l oc a t eva r i abl e ma t e r i al sl a bor a t or yc os t s . A)$1 0 , 30 0 , 0 00 B)$ 10 , 1 0 0, 0 0 0 C)$9 , 6 0 0, 0 0 0 D)$ 10 , 8 00 , 0 0 0 Ans we r :B Expl ana t i on:Budge t e dma t e r i al sl a bor a t or yc os t sf orLar gePl a neDe par t me nt=[ ( 90 , 0 0 0/16 0 , 00 0 )× $ 8 , 00 0 , 00 0 ]+( 8 0, 00 0×$ 70 )=$ 1 0, 10 0 , 00 0 Di ff: 3 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

11 Copyright © 2018 Pearson Education, Inc.

1 9 )TheSpe e dj e tAi r c r af tCor por a t i onhasac e nt r a lma t e r i a l sl a bor a t or y .Thel a bor a t or yha sonl yt wo us e r s ,t heLa r gePl a neDe pa r t me nta ndt heSma l lPl a neDe par t me nt .Thef ol l owi ngda t aappl yt ot he c omi ngbudge tye a r : Budge t e dc os t sofope r a t i ngt hema t e r i a l sl a bor a t or y f or1 0 0, 0 0 0t o20 0 , 00 0t e c hni c i anhour spe rye a r : Fi x e dc os t spe rye ar $ 8 , 20 0 , 00 0 Var i a bl ec os t s $ 7 4 pe rt e c hni c i anhour Budge t e dl ongr unus a gei nhour spe rye ar : La r gePl a neDe par t me nt 9 0 , 00 0 t e c hni c i a nhour s Smal lPl aneDe par t me nt 1 1 0, 0 0 0 t e c hni c i a nhour s Budge t e da mount sa r eus e dt oc a l c ul a t et hea l l oc a t i onr a t e s . Ac t ua lus a gef ort heye arbyt heLa r gePl a neDe par t me ntwas7 0, 0 0 0t e c hni c i a nhour sandbyt heSmal l Pl a neDe pa r t me ntwa s80 , 0 0 0t e c hni c i anhour s .I fadua l r a t ec os t a l l oc a t i onme t hodi sus e d,wha ta mount ofma t e r i a l sl a bor a t or yc os t swi l lbebudge t e df ort heSmal lPl aneDe par t me nt ? A)$1 4 , 15 3 , 3 33 B)$ 10 , 2 9 3, 3 3 3 C)$9 , 2 0 0, 0 0 0 D)$ 12 , 6 50 , 0 0 0 Ans we r :D Expl ana t i on:Budge t e dma t e r i al sl a bor a t or yc os t sf orSma l lPl aneDe par t me nt=[ ( 1 10 , 0 0 0/2 0 0, 00 0 )× $ 8 , 20 0 , 00 0 ]+( 1 10 , 0 00×$ 7 4)=$ 12 , 6 50 , 0 00 Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

12 Copyright © 2018 Pearson Education, Inc.

2 0 )TheSpe e dj e tAi r c r af tCor por a t i onhasac e nt r a lma t e r i a l sl a bor a t or y .Thel a bor a t or yha sonl yt wo us e r s ,t heLa r gePl a neDe pa r t me nta ndt heSma l lPl a neDe par t me nt .Thef ol l owi ngda t aappl yt ot he c omi ngbudge t...