Question
ABC Corporation has three service departments with the following costs and activity base: Service Department Cost Activity Base for Allocation Graphics Production $200,000 number of
ABC Corporation has three service departments with the following costs and activity base:
Service Department | Cost | Activity Base for Allocation |
Graphics Production | $200,000 | number of copies |
Accounting | 500,000 | number of invoices processed |
Personnel Department | 400,000 | number of employees |
ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows:
Micro | Macro | Super | |
Direct revenues | $700,000 | $850,000 | $650,000 |
Direct operating expenses | 50,000 | 70,000 | 100,000 |
Number of copies made | 20,000 | 30,000 | 50,000 |
Number of invoices processed | 700 | 800 | 500 |
Number of employees | 130 | 145 | 125 |
What is the service department charge rate for the Personnel Department?
$3,077
| ||
$3,200
| ||
$2,758
| ||
$1,000
|
2 points
QUESTION 20
The rates at which centralized services are charged to each division are called service department charge rates.
True
False
2 points
QUESTION 21
If in evaluating a proposal by use of the net present value method there is an excess of the present value of future cash inflows over the amount to be invested, the rate of return on the proposal is less than the rate used in the analysis.
True
False
2 points
QUESTION 22
The method of analyzing capital investment proposals that divides the estimated average annual income by the average investment is
net present value method
| ||
average rate of return method
| ||
cash payback method
| ||
internal rate of return method
|
2 points
QUESTION 23
Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units.
From the foregoing information, determine the budgeted cell conversion cost per unit.
$268.00
| ||
$240.00
| ||
$1,842.50
| ||
$296.00
|
2 points
QUESTION 24
Under the lean production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.
True
False
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started