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A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $14,000 indicates that Dept. Y
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $14,000 indicates that Dept. Y had a direct expense of $1,500 for deliveries and Dept. Z had no direct expense. The indirect expenses are $12,500. The analysis also indicates that 60% of regular delivery requests originate in Dept. Y and 40% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are: Multiple Choice $8,400; $5,600. 0 $9,000; $5,000. 0 $8,550; $7,000. 0 $8,550; $5,450 0 O $7,000; $7,000. Differential Chemical produced 10,500 gallons of Preon and 14,000 gallons of Paron. Joint costs incurred in producing the two products totaled $8,000. At the split-off point, Preon has a market value of $8.00 per gallon and Paron $4.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used. Multiple Choice $7,325. $3,200. $4,000. $1,600. $4,800. Data pertaining to a company's joint production for the current period follows: LM Quantities produced 225 lbs. 180 lbs. Market value at split-off point $ 8/lb. $ 15 /lb. Compute the cost to be allocated to Product M for this period's $760 of joint costs if the value basis is used. Multiple Choice 0 $304. 0 $456. 0 $380. 0 $1,544. 0 $906. Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $96,000 each; 125 are street frontage lots and will sell for $66,000. The developer acquired the land for $1,810,000 and spent another $1,410,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the street frontage lots using value basis. (Round your intermediate calculation to one decimal place.) 1 Multiple Choice 0 $1,732,360. 0 $1,429,640 0 $1,785,480. 0 $2,026,480. 0 $1,487,640
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