30.

Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of

$310,000

are allocated on the basis of budgeted

maintenancehours.

Personnel Department costs of

$150,000

are allocated based on the number of employees. The costs of operating departments A and B are

$184,000

and

$276,000,

respectively. Data on budgeted

maintenancehours

and number of employees are as follows:

	Support Departments		Production Departments
	Maintenance Department	Personnel Department	A	B
Budgeted costs	$310,000	$150,000	$184,000	$276,000
Budgeted maintenancehours	NA	880	1,300	600
Number of employees	50	NA	290	640

Using the direct method, what amount of Maintenance Department costs will be allocated to Department A? (Do not round any intermediary calculations.)

A.

$212,105

B.

$144,964

C.

$125,895

D.

$314,737

33.

Hugo, owner of Automated Fabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected for analysis:

Budgeted manufacturing overhead costs:
Maintenance M (Support Dept)	$330,000
Personnel P (Support Dept)	$200,000
Weaving W (Weaving Dept)	$660,000
Colorizing C (Colorizing Dept)	$370,000
Services furnished:
By Maintenance (budgeted laborhours):
to Personnel	2,000
to Weaving	8,000
to Colorizing	4,000
By Personnel (Number of employees serviced):
Plant Maintenance	8
Weaving	33
Colorizing	24

What is the complete reciprocated cost of the Maintenance Department? (Do not round any intermediary calculations.)

A.

$330,000

B.

$360,973

C.

$354,620

D.

$0

34.

Bismite Corporation purchases trees from Cheney lumber and processes them up to the

splitoff

point where two products (paper and pencil casings) are obtained. The products are then sold to an independent company that markets and distributes them to retail outlets. The following information was collected for the month ofOctober:

Trees processed:	300 trees
Production:	paper	170,000 sheets
	pencil casings	170,000
Sales:	paper	160,000 at $0.10 per page
	pencil casings	167,500 at $0.15 per casing

The cost of purchasing

300

trees and processing them up to the

splitoff

point to yield

170,000

sheets of paper and

170,000

pencil casings is

$13,500.

Bismite's accounting department reported no beginning inventory.

What is the total sales value at the

splitoff

point for paper?

A.

$25,500

B.

$17,000

C.

$25,125

D.

$16,000

35.

At the Wild Cat Group Company, the cost of the library and information center has always been charged to the various departments based upon number of employees.Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs.

Total library and information center costs are

$214,000.

Department	A	B	C
Number of employees	135	515	140
Number of engineers	20	65	10

If the number of employees is considered the cost driver, what amount of library and information center costs will be allocated to Department A? (Round any intermediary calculations two decimal places and your final answer to the nearest dollar.)

A.

$45,053

B.

$37,480

C.

$36,380

D.

$139,506

36.

High Tech Manufacturing Inc., incurred total indirect manufacturing labor costs of

$550,000.

The company is labor intensive. Total labor hours during the period were

4,500.

Using qualitative analysis, the manager and the management accountant determine that over the period the indirect manufacturing labor costs are mixed costs with only one cost

driverlaborhours.

They separated the total indirect manufacturing labor costs into costs that are fixed

($100,000

based on

9,000

hours of labor) and costs that are variable

($450,000)

based on the number of

laborhours

used. The company has estimated

7,800

labor hours during the next period.

What will be the variable cost per hour?

A.

$100.00

B.

$50.00

C.

$61.11

D.

$122.22