23.

Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center. Warehouse Department costs of

$390,000are

allocated on the basis of budgeted

warehousehours.

Data Center Department costs of

$170,000

are allocated based on the number of computer

logon

hours. The costs of operating departments Music and Books are

$140,000

and

$168,000,

respectively. Data on budgeted

warehousehours

and number of computer

logon

hours are as follows:

	Support Departments		Production Departments
	Warehouse Department	Data Center Department	Music	Books
Budgeted costs	$390,000	$170,000	$140,000	$168,000
Budgeted warehousehours	NA	590	1,060	1,510
Number of computer hours	280	NA	800	1,090

Using the

stepdown

method, what amount of Data Center Department cost will be allocated to the Warehouse Department if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

A.

$0

B.

$170,000

C.

$21,935

D.

$60,788

25.

Presented below are the production data for the first six months of the year for the mixed costs incurred by Venus Company.

Month	Cost	Units
January	$5,210	4,100
February	$5,000	4,000
March	$6,850	5,470
April	$9,900	9,000
May	$5,900	4,920
June	$7,440	6,640

Venus Company uses the

highlow

method to analyze mixed costs.

How would the cost function be stated?

A.y =

$4,900

+

$1.25X

B.y =

$2,460

+

$0.98X

C.y =

$9,900

+

$1.10X

D.y =

$1,080

+

$0.98X

26.

Quantum Company uses the

highlow

method to estimate the cost function. The information for 2017 is provided below:

	Machinehours	Labor Costs
Highest observation of cost driver	600	$36,000
Lowest observation of cost driver	400	$26,000

What is the slope coefficient?

A.

$50.00

B.

$65.00

C.

$62.00

D.

$60.00

27.

The Conity Corporation has an Electric Mixer Division and an Electric Lamp Division. Of a

$16,000,000

bond issuance, the Electric Mixer Division used

$9,100,000

and the Electric Lamp Division used

$6,900,000

for expansion. Interest costs on the bond totaled

$1,000,000

for the year.

The above interest costs would be considered a(n):

A.

facilitysustaining

cost

B.

productsustaining

cost

C.

batchlevel

cost

D.output

unitlevel

cost