1 Great Outdoors Company makes two types of camping tents Making a standard camping tent requires 4 hours of labor while making a deluxe camping tent requires 10 hours of labor During the most recent accounting period the company made 2,950 standard camping tents and 1,450 deluxe camping tents Indirect manufacturing costs amounted to $604,900 and are allocated based on labor hours Based on this information None of the answers are correct $23 of overhead cost should be allocated to each camping tent regardless of the type of tent made $92 of overhead cost should be assigned to each standard camping tent and $230 of overhead cost should be assigned to each deluxe tent $119 6 of overhead cost should be allocated to each camping tent regardless of the type of tent made 2 State University of New York (SUNY) at Purchase's College of Administrative Science is divided into three departments, accounting, marketing, and management Relevant information for each department is provided below Cost Driver Accounting Marketing Management Number of students 718 418 218 Number of classes per semester 50 36 32 Number of faculty 28 30 14 The Dean of the College of Business is trying to assign funds from the operating budget to the three departments Assuming that the chair of each department is trying to attain the highest funding possible for his her department, which of the following most accurately describes the allocation base that each chair will favor The chair of the Accounting department and the chair of the Management department will want to use the number of faculty The chair of the Accounting department will want to use number of students while the chair of the Management department will want to use number of faculty The chair of the Management department will want to use the number of classes while the chair of the Marketing department will prefer the number of faculty The chair of the Marketing department will want to use number of students, while the chair of the Accounting department will want to use number of classes per semester

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1. Great Outdoors Company makes two types of camping tents. Making a standard camping tent requires 4 hours of labor while making a deluxe camping

1. Great Outdoors Company makes two types of camping tents. Making a standard camping tent requires 4 hours of labor while making a deluxe camping tent requires 10 hours of labor. During the most recent accounting period the company made 2,950 standard camping tents and 1,450 deluxe camping tents. Indirect manufacturing costs amounted to $604,900 and are allocated based on labor hours. Based on this information:

None of the answers are correct.
$23 of overhead cost should be allocated to each camping tent regardless of the type of tent made.
$92 of overhead cost should be assigned to each standard camping tent and $230 of overhead cost should be assigned to each deluxe tent.
$119.6 of overhead cost should be allocated to each camping tent regardless of the type of tent made

2. State University of New York (SUNY) at Purchase's College of Administrative Science is divided into three departments, accounting, marketing, and management. Relevant information for each department is provided below:

Cost Driver	Accounting		Marketing		Management
Number of students		718		418		218
Number of classes per semester		50		36		32
Number of faculty		28		30		14

The Dean of the College of Business is trying to assign funds from the operating budget to the three departments. Assuming that the chair of each department is trying to attain the highest funding possible for his/her department, which of the following most accurately describes the allocation base that each chair will favor?

The chair of the Accounting department and the chair of the Management department will want to use the number of faculty.
The chair of the Accounting department will want to use number of students while the chair of the Management department will want to use number of faculty.
The chair of the Management department will want to use the number of classes while the chair of the Marketing department will prefer the number of faculty.
The chair of the Marketing department will want to use number of students, while the chair of the Accounting department will want to use number of classes per semester.