15.)

A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $140,000, and the following quantities of product and sales revenues were produced.

Product	Sales Value
Feed	$ 342,000
Flour	120,000
Starch	10,000
Total	$ 472,000

How much of the $140,000 cost should be allocated to feed if the value basis is used? (Round your intermediate percentage to the nearest whole percent.)

• $0.

• $100,800.

• $342,000.

• $253,333.

• $140,000.

16.)

Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period:

Office Expenses	Total	Allocation Basis
Salaries	$ 45,000	Number of employees
Depreciation	23,000	Cost of goods sold
Advertising	46,000	Percentage of total sales

Department	Number of employees	Sales	Cost of goods sold
Drilling	1,400	$ 344,000	$ 98,800
Grinding	2,100	516,000	161,200
Total	3,500	$ 860,000	$ 260,000

The amount of salaries that should be allocated to Drilling for the current period is:

• $45,000.

• $27,000.

• $29,800.

• $22,000.

• $18,000.

17.)

Riemer, Incorporated has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department. (Do not round your intermediate computations.)

Department	Direct Expenses	Square Feet	Employees
Maintenance	$ 19,000	550	3
Cutting	31,000	1,050	2
Assembly	71,000	2,050	17
Packaging	2,050	2,600	5

Multiple Choice

• $2,369.

• $3,500.

• $3,374.

• $9,500.

• $19,000.

18.)

Using the information below, compute the cycle efficiency:

Days sales in accounts receivable	30	days
Days sales in inventory	87	days
Days payable outstanding	50	days

• 66 days.

• 117 days.

• 52 days.

• 67 days.

• 93 days.