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ininger Company has the following information available for the past quarter Division ADivision B DivisionC $250,000 $400,000 $350,000 40% Sales Variable expenses 52% 30% Fixed

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ininger Company has the following information available for the past quarter Division ADivision B DivisionC $250,000 $400,000 $350,000 40% Sales Variable expenses 52% 30% Fixed expenses controllable by division manager $60,000 200,000 $175,000 Fixed expenses controllable by others $10,000 $5,000 $7,500 Unallocated expenses for all three divisions are $22,000. What is the contribution controllable by the division manager in Division B? A) $53,000 B) $75,000 C) $80,000 D) $280,000 Answer 8. For costs that accountants cannot directly trace to products or services, accountants useor A) ABC methods; payback method B) cost-budgeting methods; ignore remaining costs C) sensitivity analysis;financial planning models D) cost-allocation methods; leave costs unallocated Answer: 9. The budgeted factory overhead rate is computed as A) actual factory overhead costs divided by actual production in units B) actual factory overhead costs divided by actual cost driver activi C) budgeted factory overhead costs divided by actual cost driver D) budgeted Answer: ty activity factory overhead costs divided by budgeted cost -allocation base level 10. One of the primary purposes of an activity-based costing systerm A) focus on quality improvements in the production process B) focus on cost reduction in the production process C) eliminate all overhead costs for manufactured products D) increase the accuracy of product costs so managers can make better decisions

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