34) Which of the following is true about the process of making cost allocations? A) as the cost of collecting and processing cost allocation information decreases, it becomes more 34) economically feasible to provide more detailed cost allocations B) a cost benefit-analysis cannot be performance on cost allocation systems because the benefits are difficult to estimate C) the costs of cost allocation systems is mostly the cost of collection D) the costs of designing and implernmenting a cost allocation system are less visible than the benefits of such a system 35) The Fortise Corporation manufactures two types of vacuum cleaners, the Victor for commercial 35) building use and the House-Mate for residences. Budgeted and actual operating data for the year 2017 were as follows Static Budget Number sold VictorHouse-Mate 24,000 6000 30,000 $3,120,000 $4,680,000 Contribution margin $1,560,000 ctual Results Number sold Contribution margin VictorHouse-Mate 40,000 45,400 $4,130,000 $5,530,000 5400 $1,400,000 What is the total sales-volume variance in terms of the contribution margin? A) $1,924,000 unfavorable C) $5,200,000 unfavorable B) $1,404,000 favorable D) $1,924,000 favorable 36) 36) When corporate-sustaining costs are fully allocated to operating income from each distribution-channel is distribution channels, then the sum of the A) equal to customer-level operating income B) greater than company wide operating income c) equal to company wide operating income D) greater than customer-level operating income 37 37) Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center Warehouse Department costs of $370,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $180,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $137,500 and $165,000 respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as fol lows Production Departments Music Books $137,50 $165,00 Support Departments Warehouse Data Center Department Department 370,000 $180,000 Budgeted costs Budgeted warehouse-hours Number of computer hours 210 Using the direct method, what amount of Data Center Department costs will be allocated to Department Music? (Do not round any intermediary calculations.) 1050 1520 500 NA 1040 900 D) $75,349 C) $83,505 B) $96,495 A) $180,000