1. Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $95,000 each; 125 are street frontage lots and will sell for $65,000. The developer acquired the land for $1,800,000 and spent another $1,400,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the street frontage lots using value basis. (Round your intermediate calculation to one decimal place.)

A. $1,724,800. B. $1,777,920 C. $1,422,080 D. $1,475,200 E. $2,018,920

2. Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $107,000 each; 125 are street frontage lots and will sell for $77,000. The developer acquired the land for $1,920,000 and spent another $1,520,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using value basis. (Round your intermediate calculation to one decimal place.)

A. $1,506,720. B. $1,809,440. C.$2,103,560. D. $1,630,560. E. $1,862,560.

3. Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.

Direct labor standard (2.00 hrs. @ $14.10/hr.)	$	28.20		per finished unit
Actual direct labor hours		88,900		hrs.
Budgeted units		46,600		units
Actual finished units produced		43,000		units
Standard variable OH rate (2.00 hrs. @ $14.00/hr.)	$	28.00		per finished unit
Standard fixed OH rate ($232,000/46,600 units)	$	5.00		per unit
Actual cost of variable overhead costs incurred	$	1,216,000
Actual cost of fixed overhead costs incurred	$	234,900

A. $7200 unfavorable. B. $7200 favorable. C. $28,600 favorable. D. $40,600 unfavorable. E. $40,600 favorable.

4. Granfield Company has a piece of manufacturing equipment with a book value of $39,000 and a remaining useful life of four years. At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $21,800. Granfield can purchase a new machine for $118,000 and receive $21,800 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,800 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:

A. $51,300 increase B. $21,000 decrease C. $17,200 decrease D. $75,200 decrease E. $21,000 increase