38.

A financial analyst for Simon Manufacturing prepared the following report:

Customers	Customer Level Operating Income	Customer Revenue
A	$5,041.00	$26,250
B	$4,202.00	$30,000
C	$3,368.00	$15,000
D	$1,069.50	$7,300
E	$984.80	$5,100
F	$844.80	$4,400
G	$336.60	$1,800
H	$252.00	$4,500
I	($168.00)	$2,400
J	($676.00)	$2,600

What is the cumulative

customerlevel

operating income as a percentage of customer level operating income for the top 4 most profitable (operating income)customers?

A.

17.4%

B.

79.1%

C.

85.0%

D.

89.7%

40.

For February, the cost components of a picture frame include

$0.39

for the glass,

$0.73

for the wooden frame, and

$0.95

for assembly. The assembly desk and tools cost

$610.

Two hundred fifty frames are expected to be produced in the coming year. What cost function best represents these costs?

A.y =

610

+

2.07X

B.y =

2.07

+

610X

C.y =

1.12

+

610X

D.y =

610

+

1.12X

42.

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

splitoff

point where two products (paper and pencil casings) emerge from the process. 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 of October:

Trees processed:	260 trees
Production:	paper	180,000 sheets
	pencil casings	180,000
Sales:	paper	169,000 at $0.20 per page
	pencil casings	176,000 at $0.24 per casing

The cost of purchasing

260

trees and processing them up to the

splitoff

point to yield

180,000

sheets of paper and

180,000

pencil casings is

$13,000.

Bismite's accounting department reported no beginning inventory.

What are the paper's and the pencil's approximate weighted cost proportions using the sales value at

splitoff

method, respectively?

A.

50%

and

50%

B.

45.45%

and

54.55%

C.

48.99%

and

51.01%

D.

44.45%

and

55.55%

43.

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

$320,000

are allocated on the basis of budgeted

maintenancehours.

Personnel Department costs of

$140,000

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	$320,000	$140,000	$184,000	$276,000
Budgeted maintenancehours	NA	900	1,290	670
Number of employees	55	NA	240	650

Using the

stepdown

method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocated first? (Do not round any intermediary calculations.)

A.

$121,102

B.

$144,336

C.

$63,147

D.

$210,612

44.

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

splitoff

point where two products (paper and pencil casings) emerge from the process. 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 of October:

Trees processed:	260 trees
Production:	paper	160,000 sheets
	pencil casings	160,000
Sales:	paper	155,000 at $0.20 per page
	pencil casings	156,500 at $0.25 per casing

The cost of purchasing

260

trees and processing them up to the

splitoff

point to yield

160,000

sheets of paper and

160,000

pencil casings is

$15,500.

Bismite's accounting department reported no beginning inventory.

If the sales value at

splitoff

method is used, what is the approximate production cost for each pencil casing? (Round intermediary percentages to the nearesthundredth.)

A.

$0.044

B.

$0.054

C.

$0.056

D.

$0.043

45.

Alfred, owner of

HiTech

Fiberglass Fabricators, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected foranalysis:

Budgeted manufacturing overhead costs:
Plant Maintenance PM (Support Dept)	$330,000
Data Processing DP (Support Dept)	$70,000
Machining M (Operating Dept)	$200,000
Capping C (Operating Dept)	$145,000
Services furnished:
By Plant Maintenance (budgeted laborhours):
to Data Processing	3,100
to Machining	5,600
to Capping	8,700
By Data Processing (budgeted computer time):
to Plant Maintenance	950
to Machining	3,500
to Capping	850

Which of the following linear equations represents the complete reciprocated cost of the Data Processing Department?

A.DP=

$330,000

+

(950

/

17,400)

DP

B.DP=

$70,000

+

(3,100/

17,400)

PM

C.DP=

$70,000

(950

/

5,300)

+

$330,000

(3,100

/

17,400)

D.DP=

$70,000

+

(950

/

5,300)

PM