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#13 Parker Corporation has two service departments, Cafeteria and Engineering, and two operating departments. The number of employees in each department is given below Cafeteria
#13
Parker Corporation has two service departments, Cafeteria and Engineering, and two operating departments. The number of employees in each department is given below Cafeteria Engineering Operating Department 1 Operating Department 2 40 500 The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, the amount of Cafeteria cost allocated to Engineering under the direct method would be closest to: A) $ 17,344 B) $3,700 C) $3,750 12)Which of the following would most likely NOT be included as manufacturing overhead12)_- in a furniture factory? A) The cost of the glue in a chair B) The workman's compensation insurance of the supervisor who oversees production. C) The factory utilities of the department in which production takes place. D) The amount paid to the individual who stains a chair. 13) Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense 6.55 S 3.50 1.40 2.60 S 0.70 S 0.40 $ 1.50 0.45 For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to: C) $45,800 D) $10,400 A) $56,200 B) S60,200
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