21.Two investment centers at Marshman Corporation have the following current-year income and asset data:

Investment Center AInvestment Center BInvestment center income$525,000$635,000Investment center average invested assets$4,600,000$3,050,000

The return on investment (ROI) for Investment Center A is:

Multiple Choice

• 798.30%
• 28.50%
• 11.41%
• 48.00
• 23.50

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

Office ExpensesTotalAllocation BasisSalaries$52,000Number of employeesDepreciation37,000Cost of goods soldAdvertising75,000Net sales

ItemDrillingGrindingTotalNumber of employees1,6002,4004,000Net sales$400,000$600,000$1,000,000Cost of goods sold$152,000$248,000$400,000

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

Multiple Choice

• $52,000.
• $31,200.
• $12,000.
• $15,000.
• $22,940.

23.Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 200 employees and occupies 61,200 square feet; Painting has 50 employees and occupies 40,800 square feet. Indirect factory expenses for the current period are as follows:

Administration$91,000Maintenance$111,000

Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of indirect factory expenses that should be allocated to the Painting Department for the current period is:

Multiple Choice

• $72,800.
• $66,600.
• $62,600.
• $139,400.
• $125,200.

24.Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Department 1's contribution to overhead as a percent of sales is:

Dept.SalesCost of Goods SoldDirect ExpensesIndirect Expenses1$1,180,000$718,000$131,600$98,0002580,000168,00058,000118,0003880,000318,000168,00038,000

Multiple Choice

• 61.2%
• 28.0%
• 36.0%
• 39.0%
• 66.4%

25.A lumber mill paid $120,000 for logs that produced 125,000 board feet of lumber in 3 different grades and amounts as follows:

GradeProductionMarket PriceStructural16,000board feet$3,000/1,000bd. ft.No. 1 Common44,000board feet$1,600/1,000bd. ft.No. 2 Common65,000board feet$640/1,000bd. ft.

Compute the portion of the $120,000 joint cost to be allocated to No. 2 Common if the value basis is used.

Multiple Choice

• $40,000.
• $0.
• $60,000.
• $120,000.
• $31,200.