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19. The advantage of allocating budgeted rather than actual service department costs is that A) service departments cannot pass on the costs of inefficiencies and

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19. The advantage of allocating budgeted rather than actual service department costs is that A) service departments cannot pass on the costs of inefficiencies and waste. B) this practice is acceptable under GAAP. C) only one cost pool is necessary. D) managers are not motivated to evaluate the charges. 20. Which of the following is accounted for as a product cost in variable costing? A) Variable manufacturing overhead B) Fixed manufacturing overhead C) Product advertising costs D) Product delivery costs to customers 21. Rango Enterprises' manufacturing costs for 2017 are as follows: Direct materials Direct labor Manufacturing supplies Depreciation of factory equipment Other fixed manufacturing overhead $ 65,000 118,000 9,000 22.000 43,000 What amount should be considered as product costs for external reporting purposes? A) $248,000 B) $257,000 C) $183,000 D) $192,000 22. Maintenance costs at Sturgeon Company are allocated to the production departments based on area occupied. Maintenance costs of $300,000 are budgeted to maintain a 60,000 square foot production area. If the finishing department occupies 25,000 square feet, how much of the maintenance department costs will be allocated to the finishing department? A) $175,000 B) $5,000 C) $125,000 D) $100,000 23. Which of the following is accounted for differently in full costing compared to variable costing? A) Variable manufacturing overhead B) Direct material C) Fixed manufacturing overhead D) Direct labor

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