18 Johnson Lumber Mill produces various grades of cut boards from raw lumber. The costs incurred once the cut boards are separated and processed further are

a.investment center costs

b.joint costs that cannot be separated

c.new costs that cannot be traced to the various grades of lumber being produced

19 An example of the split-off point in oil, gasoline, and kerosene production is that point where crude oil is

a.drilled

b.pumped from the ground

c.distilled into gasoline and kerosene

d.transported to the refinery

d.new costs that can be traced to the various grades of lumber being produced

20 Using the sequential method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has determined to allocate Janitorial costs before Cafeteria costs.

It has the following information about its two service departments and two production departments, Cutting and Assembly:

	Costs	Square Feet	Number of Employees
Janitorial Department	$450,000	100	20
Cafeteria Department	200,000	10,000	10
Cutting Department	1,500,000	2,000	60
Assembly Department	3,000,000	8,000	20

How much of the Janitorial Department's $450,000 costs is allocated to the Cutting Department?

a.$45,000

b.$90,000

c.$360,000

d.$44,550

21 When activity-based costing is used to apply overhead to products, support department costs are referred to as

a.multiple activity costs

b.activity-based department costs

c.department activity costs

d.support activity costs