Canada Co has two departments, Bicycles and Scooter Rental Canada uses activity-based costing to allocate costs to the two departments in various ways. Bicycle Rental Scooter Rental Number of units 850 430 Number of employees 125 75 Sales $750,000 $375,000 If advertising expense of $250,000 is allocated on the basis of sales, the amount allocated to the Bicycle Rental Department would be Select one: 2. 5170,935 b. 5175,555 5166667 Canada Co has two departments, Bicycles and Scooter Rental Canada uses activity-based costing to allocate costs to the two departments in various ways. Bicycle Rental Scooter Rental Number of units 850 430 Number of employees 125 75 Sales $750,000 $375,000 If advertising expense of $450,000 is allocated based on sales, the cost per cost driver rate would be Select one: a $0.44 b. 50.40 $0.52 50.60 A company produces 6) skim milk and (1) cream from whole milk in batches for sales. During a month of production with no beginning inventories, the company processed 820,000 gallons of direct materials (797,500 gallons of good products). The cost of purchasing the direct materials was Dh2,350,000. The good products were obtained from 354,500 gallons of skim milk and 443,000 gallons of cream. The company sold 344,500 gallons of skim milk at Dh115 per gation, and 424,000 gallons of cream at Dh130 per gallon Their respective separable processing costs are Dh50 per gallon for skim milk and Dh65 per gallon for cream Required: 1. Calculate the respective joint costs per batch of skim milk and to cream based on the number of gallons at splitoff point. 2 marks) 2. Calculate the respective joint costs per batch of skim milk and to cream based on net realizable value at splitoff point. mark) 3. Provide three reasons for allocating joint costs to individual products or services. (3 marks) Paragraph Static Flexible Budget 112.500 Sales-Volume Variances Analysis Units Sold Revenues Variable Costs Fixed Costs Operating Income Actual Flexible Results Variances 112,500 AED42,080 AED 1,000 U AED200 U AED8,280 AED860 F AED17.740 (D) AED1,400 F AED2,340 F (A) AED15,860 AED9,140 AED16,080 Budget 103,125 (B) AED 18,200 AED9,140 AED15,140 (E) Required: 1. Complete the budgeting report by determining the missing data. flexible-budget revenues (A) (1 mark) 11 static-budget revenues (B) (1 mark) il actual variable costs (0 mark) IV. total flexible-budget variance (D) (1 mark) total sales-volume variance (@mark) Why should the performance of vanance analyses be based on flexible budgets rather than static budgets [3 marks) V. The assembly department of Canada Manufacturing had 50 units as work in process at the beginning of September. These units were 50% complete. It has 100 units which are 25% complete at the end of the month. During September, Canada completed and transferred 250 units. Direct materials are added at the beginning of production, and Conversion costs are allocated evenly throughout production. Canada Manufacturers uses weighted-average process-costing method. Calculate the total equivalent units in ending inventory for assignment of conversion costs? Select one: a. 100 units b. 13 units 75 units G 25 units
