Kia Corporation has two departments, A and B. Central costs could be allocated to the two departments in various ways. Square footage of department A and B 6,000 and 18,000 square feet respectively, Number of employees of department A and B 1,120 and 480 respectively, and sales of department A and B $400,000 and $2,000,000 respectively. If total rent expense of $288,000 is allocated on the basis of square footage, the amount allocated to Department B would be:

a.

$240,000

b.

$86,400

c.

$72,000

d.

$216,000

Hamada Inc., manufactures cover for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through two Departments X and Y. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department X for February 2020 are: WIP beginning, 40% complete 200 units, Units started during February 600 units, and WIP ending 30% complete 100 units. The equivalent units of direct materials using weighted average method is:

a.

800 units.

b.

400 units.

c.

700 units.

d.

500 units.