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Wolf Martial Art allocates indirect labour costs to its two departments, Lifestyle and Professional, using number of employees per department as the cost driver. For the current year the number of employees in Lifestyle department is estimated to be 45 and for Professional department 30 and total indirect labour costs for the departments are budgeted at $250,000. What are the amounts allocated to the departments? 0 A. Lifestyle $150,000; Professional $100,000 0 B. Lifestyle $83,333; Professional $166,667 0 C. Lifestyle $125,000; Professional $125,000 0 D. Lifestyle $50,000; Professional $200,000 0 E. Lifestyle $166,667; Professional $83,333 The forecasted sales volume of Walter's Waffle Makers in the coming year is 36,000 units. The CFO of Walter Waffle Makers estimated that 40% of sales will occur in the first quarter, with the rest of the sales occur evenly across the remaining three quarters. The price of a waffle maker is $25. What is the budgeted sales revenue for quarter 3? O A. $4,800 0 B. $540,000 0 0. $225,000 0 D. $180,000 0 E. $360,000 Tracker Electrical has three support departments (Personnel, Training, Information System) and two operating departments (Consulting, Maintenance). The department costs prior to support cost allocation, and the cost allocation basis for each support department, are summarised in the table below. Support departments Operating departments Information Personnel Training system Consulting Maintenance $650,000 $600,000 $500,000 $1,000,000 $900,000 Personnel (number 25 of employees) Information system (number of 3 2 10 15 computers) Tralnlng (tramlng 350 hours) Tracker Electrical uses the step-down method to allocate its support department costs. Which of the following is the correct order of allocating support department costs using the mpdown method? 0 A. Training, then Personnel, then Information System 0 B. Personnel, then Information system, then Training. 0 C. Information system, then Training, then Personnel 0 D. Information system, then Personnel, then Training 0 E. Personnel, then Training, then Information system Based on its quarterly sales forecast, Haddonfield Hatchet's projected sale volumes for its hatchets are first quarter: 25,000 units, second quarter: 28,000 units. The beginning inventory in the first quarter is 12,500 units. Ending inventory for each quarter should be 40% of the next quarter's sales' How many units of hatchets should Haddonfield Hatchet produce in the first quarter? 0 A. 48,700 0 B. 22,500 0 0. 26,300 0 D. 23,700 0 E. 36,200 The following budgeted per unit cost for Bishop Storage's extralarge storage box is based on an expected volume of 2,000 units. Direct material $ 2.00 Direct labour $ 300 Variable overhead $ 2.00 Fixed overhead $ 5400 Total $12.00 What is the budgeted product cost for a planned volume of 2,200 units? 0 A. $15,400 0 B. $26,400 0 C. $25,400 0 D. $11,000 0 E. $24,000 Chopper Co manufactures kitchen appliances. One of its products, EzyChop, has the following costs: direct material: $5 per unit, direct labour $3 per unit, variable overhead cost $2 per unit, and fixed overhead cost $4 per unit. What is the prime cost of one unit of EzyChop? o A. $10 0 B. $8 0 0. $14 0 D. $7 0 E. $5 Last year, Scar Engineering budgeted for $500,000 overhead cost, to be allocated between its three departments (nautical, mining and space) based on sales revenue. The total budgeted sales revenue for the three departments were $2,000,000, and the actual sale revenue last year was $2,500,000. What was last year's pre-determined overhead cost rate? 0 At $020 per sales dollar 0 B. $5 per sales dollar 0 C. $025 per sales dollar 0 D. $0.22 per sales dollar 0 E. $4 per sales dollar Haddonfield Hatchet's manufacturing process has two activities that involve direct labour: stamping and polishing. Each hatchet requires 0.1 labour hour in stamping and 0.2 labour hour in polishing. The hourly labour cost (including all oncosts) for stamping is $40 and for polishing is $704 The required production level in the first quarter is 30,000 hatchets, What is the direct labour budget for Haddonfield Hatchet in the first quarter? 0 A. $420,000 0 B. $540,000 0 0. $495,000 0 D. $270,000 0 E. $120,000 Ash Automation produces two types of microcontroller chips: Standard and Ultra. The Ultra chips sell for a higher price. Using a static budget based on a product mix of 50% Standard chips and 50% Ultra chips, the sales revenue variance in June is $90,000 (a favourable variance). Which of the following is NOT a likely explanation for this sales revenue variance? Q) A. The company uses cheaper direct materials with lower quality when producing the Ultra chips. 0 BA The company sells more units of both Ultra and Basic chips than planned 0 C. The company sells a higher proportion of Ultra chips than planned. 0 D. The company sells the Ultra chips at a higher price than planned. 0 E. The company sells the Basic chips at a higher price than planned. Clear my choice Which of the following statement(s) is a limitation of relying on cost allocation to manage organisational resources? I. Cost information is not useful for pricing products and services. ll. Cost information is not useful for understanding the efficiency of a department. Ill. Some attributes, such as the functionalities of an information system, cannot be easily measured using cost information. Q) A. land llonly. O B. lonly. O C. "I only. 0 D. All three statements are correct (i.e., all are limitations of cost allocation). 0 E. II and I\" only. Clear my choice Which of the following is the correct sequence for preparing the components in an operating budget? 0 A. Develop production budget prior to preparing revenue budget 0 BA Develop budgeted cost of sales before preparing the production budget 0 C. Develop the variable overhead cost budget before sales revenue budget 0 D. Develop cash disbursement budget before preparing budgeted cost of goods sold. 0 E. Develop sales forecast prior to preparing production budget