53. Life Lessons provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 20x1, the firm's information system produced the following data: Number of Number of Percent of Direct Students Faculty $ 6,000 English 4 Mathematics 3 Science 5 History 2 10% 24 503 8,000 15 8 15 3,000 Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Life Lessons operations for November 20x1 included: Facility rent Custodial services $2,500 6 1,800 Computer equipment amortization Which of the following could be a cost object for Life Lessons? I. A student Il. A subject area IIl. A cost pool a) I and Il only b) adl only c)I and IlI only d) I, Il, and Ill Answer: a Difficulty: Easy Learning Objective: Apply an ABC system in assigning costs CPA: Management Accounting Bloomcode: Comprehension 54. Life Lessons provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 20x1, the firm's information system produced the following data: Number of Number of Percent of Direct Students Faculty 20 nglish 4 Mathematics 3 Science 5 History 2 10% $ 6,000 25 8,000 15 8 Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Life Lessons operations for November 20x1 included: S2 500 54. Life Lessons provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 20x1, the firm's information system produced the following data: Number of Number of Percent of Direct Students Faculty Costs English 4 Mathematics 3 Science 5 20 10% $ 6,000 24 25 8,000 50 12,000 History 2 3,000 Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Life Lessons operations for November 20x1 included: Facility rent Custodial services Utilities $2,500 1,800 Advertising The number of students in each area is most likely to be a cost driver for a) Utility costs b) Advertising costs c) Cost for tutors d) Price charged for tutoring Answer: C Difficulty: Easy Learning Objective: Apply an ABC system in assigning costs 55. Life Lessons provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 20x1, the firm's information system produced the following data: Number of Number of Percent of Direct Students Faculty English TutorsNumber of nglish 4 Mathematics 3 Science 5 History 2 20 10% $6,000 24 25 8,000 50 12,000 3,000 Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Life Lessons operations for November 20x1 included: Facility rent Custodial services Utilities Computer equipment amortization $2,500 1,800 800
