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