1.) A company produced 240 units of Product L and 180 units of Product M during the current period and incurred joint costs of $708. Product L sells for $8 per unit and Product M sells for $16 per unit. Compute the cost to be allocated to Product L for this periods joint costs if the value basis is used. (Do not round intermediate calculations.)

Multiple Choice

• $283.

• $533.

• $129.

• $1,684.

• $849.

2.)

Super Grocery Store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:

Expense	Basis for allocation	Amount
Administrative	Square feet of floor space	$ 24,000
Advertising	Amount of dollar sales	$ 17,000

The following information is available for its three operating (sales) departments:

Department	Square Feet	Dollar Sales
Produce	1,170	$ 89,000
Bakery	780	39,000
Meats	1,950	51,000
Totals	3,900	$ 179,000

What is the total administrative expense allocated to the Meats department?

• $12,000.

• $15,900.

• $5,360.

• $1,950.

• $3,900.

3.) A company has two departments, Y and Z that incur advertising expenses of $19,200. Advertising expenses are allocated based on sales. Department Y has sales of $408,000 and Department Z has sales of $612,000. The advertising expense allocated to Departments Y and Z, respectively, are:

• $7,680; $11,520.

• $11,520; $7,680.

• $12,680; $6,520.

• $6,520; $12,680.

• $6,120; $13,080.