4) A radial tire manufacturer produces products in two departments-Divisions A and B. The comp uses separate predetermined overhead allocation rates for each department to allocate its overhead Divisions A and B have estimated manufacturing overhead costs of $170,000 and $350,000, respectiv Division A uses machine hours as the allocation base, and Division B uses direct labor hours as the allocation base. The total estimated machine hours were 34,000, and direct labor hours were 20,000 fo year. Calculate the departmental predetermined overhead allocation rates. (Round your answer to the nearest cent.) A) Division A-$5.00, Division B-$17.50 B) Division A-$17.50, Division B-$5.00 C) Division A-$8.50, Division B-$10.29 D) Division A-$10.29, Division B-$8.50 5) The number of inspections, number of service calls and number of batches are all examples of A) direct labor costs B) service costs C) cost drivers D) allocable costs 6) Which would be an appropriate cost driver for the warranty services activity? A) direct labor hours B) number of service calls C) number of purchase orders D) number of batches 7 Louie's Music Co produces three types of ha three types of harmonicas: the junior model, the standard model and the professional model. The junior model requires 8 setups, the standard model requires 12 setups and the professional model requires 20 setups. The company expects to incur overhead costs of the cost driver is machine setups. How much overhead is assigned to each product? $28,000 where A) Junior ModelStandard Model Professional Mode $9,333 $9,333 $9,334 B) Junior Model Standard Model Professional Model $7.000 $7,000 $14,000 Junior Model Standard Model Professiona $5,600 Model $8,400 $14,000 D) lunior Model Standard Model Professional Model $7,000 500 $17,500 8) Which of the following is an advantage of decentralization? Aj Managers' motivation and retention can be increased by empowering segment managers to make decisions. B) Certain costs of activities may be duplicated C) Customer response time is generally decreased D) Top management can concentrate on decisions that relate to day-to-day operations of segmen 9) Which of the following is a disadvantage of decentralization? A) It results in increased customer response time. B) It allows only the top management to make decisions. C) It does not D) It results in problems with achieving goal congruence. motivate employees because the decision-making powers are not delegated. 10) The term goal congruence refers to the A) matching of financial goals of the company with its nonfinancial goals B) aligning the goals of business segment managers with the goals of top management C) achievement of the goals set by the management by utilizing the resources available D) duplication of costs as a result of decentralization 11) The production line of a manufacturing company is most likely to be considered as a(n) A) cost center B) profit center C) revenue center D) investment center 12) Profit center responsibility reports include_ A) revenues only B) invested capital C) both revenues and expenses D) returns on investments 13) L A) increasing profits B) decreasing profits C) increasing interest expense D) decreasing plant assets ong-term investments are made by the investment center manager for the purpose of 14) Which of the following would most likely be evaluated using residual income? A) cost center B) profit center C) revenue center D) investment center rad Turret, one of the managers of a multi-national company, is responsible for generating revenues and controlling costs in order to increase the operating income of his division. However, he is not concened about investment-related decisions. Brad is most likely to be the manager of a(n) A) cost center B) investment center C) profit center D) revenue center 16) The payroll department of a manufacturing company is most likely to be a(n) A) cost center B) revenue center C) investment center D) profit center 17) Which of the following managers is likely to have the most diverse responsibilities? A) the manager of a cost center B) the manager of a profit center C) the manager of an investment center D) the manager of a revenue center 18) Bernaise, Inc. sells cosmetic products in the United States. Which one of the following is most likely to be a revenue center for Bernaise? A) a Bernaise retail store in Dallas B) the Bernaise human resource department C) a Bernaise kiosk at a mall for selling its products D) the Bernaise product lines