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A company has two departments, Y and Z that incur advertising expenses of $12,000. Advertising expenses are allocated based on sales. Department Y has sales
A company has two departments, Y and Z that incur advertising expenses of $12,000. Advertising expenses are allocated based on sales. Department Y has sales of $560,000 and Department Z has sales of $840,000. The advertising expense allocated to Departments Y and Z, respectively, are: Multiple Cholce $5,250;$6,750 $4,800;$7,200 $6,750;$5,250. $5,700;$6,300. $6,600;$5,400. Differential Chemical produced 11,000 gallons of Preon and 22,000 gallons of Paron. Joint costs incurred in producing the two products totaled $7,500. At the split-off point, Preon has a market value of $6.00 per gallon and Paron $2.00 per gallon. Compute the portion of the joint costs to be allocated to Preon if the value basis is used. Multiple Cholce $3,000 $1,500 $2,500. $5,625. $4,500. A company rents a building with a total of 86,000 square feet, which are evenly divided between two floors. The total monthly rent for the building is $84,000. The company allocates $56,000 of total rent expense to the first floor and $28,000 of total rent expense to the second floor. How much of the monthly rental expense should be allocated to a department that occupies 17,200 square feet on the first floor? Multiple Cholce $22,400. $14,000. $8,400. $11,200. $5,600
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