Lenser Company has two service departments — product design and engineering support, and two production departments — assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30% 60% Engineering Support 20% 0% 45% 35% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design $ 170,000 Engineering Support $ 190,000 Assembly $ 670,000 Finishing $ 1,020,000 The total cost accumulated in the assembly department using the direct method is: Note: Calculate all ratios and percentages to 2 decimal places, for example 33.33%, and round all dollar amounts to the nearest whole dollar.   Multiple Choice   $1,216,458.   $2,050,000.   $833,542.   $793,542.   $840,208.

Fans Company has two service departments - product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: SERVICE DEPARTMENT Product Design Engineering Support Product Design Engineering Support Assembly Finishing Multiple Choice O The direct operating costs of the departments (including both variable and fixed costs) were as follows: $1.057.333. O $1,970,000. O $712,667. O The total cost accumulated in the finishing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333 %, and round all dollar amounts to the nearest whole dollar assume that the engineering support department goes first): Design 0% 20% $664,792. $980,208. SERVICES PROVIDED TO $ 180,000 $ 160,000 $570,000 $ 860,000 Support 10% 0% Assembly 30% 45% Finishing 60% 35%

Fans Company has two service departments — product design and engineering support, and two production departments — assembly and finishing. The distribution of each service department's efforts to the other departments is shown below:   SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30% 60% Engineering Support 20% 0% 45% 35%   The direct operating costs of the departments (including both variable and fixed costs) were as follows:   Product Design $ 105,000 Engineering Support $ 195,000 Assembly $ 540,000 Finishing $ 790,000   The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):

Fans Company has two service departments — product design and engineering support, and two production departments — assembly and finishing. The distribution of each service department's efforts to the other departments is shown below:   SERVICE DEPARTMENT SERVICES PROVIDED TO Design Support Assembly Finishing Product Design 0% 10% 30% 60% Engineering Support 20% 0% 45% 35%   The direct operating costs of the departments (including both variable and fixed costs) were as follows:   Product Design $ 170,000 Engineering Support $ 150,000 Assembly $ 560,000 Finishing $ 850,000   The total cost accumulated in the finishing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar assume that the engineering support department goes first):     Multiple Choice   $1,035,833.   $1,930,000.   $694,167.   $646,292.   $958,708.

The Merchant Manufacturing Company has two service departments - purchasing and maintenance, and two production departments - fabrication and assembly. The distribution of each service department's efforts to the other departments is shown below: FROM Purchasing Maintenance Purchasing Maintenance Fabrication Assembly Multiple Choice The direct operating costs of the departments (including both variable and fixed costs) were as follows: O O O Purchasing Maintenance Fabrication 70 % 20 % 55 % The total cost accumulated in the assembly department using the direct method is (calculate all ratlos and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar): O $123,000 45,000 99,000 75,000 $216,357. $123,600. 30 % $94,800. TO $125,643. $63,643. Assembly 10 % 15 %

Yekka Corporation has two producing department and two service departments labeled P1, P2, S1 and S2, respectively. Direct costs for each department and the proportion of services costs used by various departments are as follows: Cost Center Direct Costs Proportion of services used by:   S1 S2 P1 P2 P1 90,000         P2 60,000         S1 20,000 - .80 .1 .1 S2 32,000 .20 - .50 .30   In calculating predetermined overhead rates, machine hours are used as the base in P1 and direct labor hours as the base in P2.                                                                         P1                                P2                         Machine hours                     50,000                         40,000                         Direct labor hours               40,000                         20,000   Requirements: Allocate the service department costs to operating departments and compute the factory…

Godo

Bell, Biv, and Devoe Company had the following activities, estimated indirect activity costs, and allocation bases:   Activities Indirect Activity Costs Allocation Base Account inquiry (hours) $85,200 2,200 Account billing (lines) $55,000 34,000 Account verification (accounts) $39,250 25,500 Correspondence (letters) $71,000 9,000   The company uses activity-based costing.   The above activities are used by Departments P and Q as follows:     Department P Department Q Account inquiry (hours) 400 800 Account billing (lines) 10,000 4,000 Account verification (accounts) 6,000 7,000 Correspondence (letters) 1,000 2,000   What is the cost per driver unit for the account inquiry activity? (Round all answers to two decimal places.) $1.62 $9.47 $7.89 $38.73

(Appendix 4B) Sequential Method of Support Department Cost Allocation Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates power and general factory costs to each operating division using the sequential method. General Factory is allocated first in the sequential method for the company. Support department cost allocations using the sequential method are based on the following data: Support Departments Operating Divisions Overhead costs Machine hours Square footage Direct labor hours Required: Power Allocation ratios for General Factory Battery Power Small Motors $160,000 Allocation ratios for Power 2,000 1,000 General Factory $430,000 1. Calculate the allocation ratios for Power and General Factory. (Note: Carry these calculations out to four decimal places.) 2,000 1,500 Battery $163,000 7,000 7,500 18,000 Small Motors $84,600 1,500 20,000 60,000

Thornton Corporation's computer services department assists two operating departments in using the company's information system effectively. The annual cost of computer services is $626,200. The production department employs 37 employees, and the sales department employs 25 employees. Thornton uses the number of employees as the cost driver for allocating the cost of computer services to operating departments. Required Allocate the cost of computer services to operating departments. Department Allocated Cost Production Sales