Question
1. Billy Stone, Inc. budgets the following amounts for its Buildings & Grounds and Computer Services Departments in servicing each other and the two manufacturing
1.
Billy Stone, Inc. budgets the following amounts for its Buildings & Grounds and Computer Services Departments in servicing each other and the two manufacturing divisions of Signs and Mailers: The actual results for the time period were as follows:
Used By
Supplied By Building & Grounds Computer Services Signs Mailers
Cost 150,000 111000
Buildings & Grounds 0.10 0.60 0.30
Computer Services 0.25 0.35 0.40
The equation to determine the total costs of Computer Services using the reciprocal allocation method is
Select one:
a. CS = $111,000 + 0.20 B&G.
b. Other
c. CS = $111,000 + 0.25 B&G.
d. CS = $111,000 + 0.10 B&G.
e. CS = $111,000 + 0.15B&G.
2.
Billy Stone, Inc. budgets the following amounts for its Buildings & Grounds and Computer Services Departments in servicing each other and the two manufacturing divisions of Signs and Mailers: The actual results for the time period were as follows:
Used By
Supplied By Building & Grounds Computer Services Signs Mailers
Cost 150,000 111000
Buildings & Grounds 0.10 0.60 0.30
Computer Services 0.25 0.35 0.40
Total Costs allocated from Buildings & Grounds to the Signs and Mailers Departments respectively using the direct allocation method are
Select one:
a. $ 51800 and 63429.
b. $100,000 and 50,000.
c. $100,000 and 50,000.
d. $38850. and 44400
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