M& G TV and Appliance Store is a small company that has hired you to perform some management advisory services. The following information pertains to 2017 operations.

Sales (1,400 televisions)

$1,400,000

Cost of goods sold

602,000

Storemanager's salary per year

209,000

Operating costs per year

230,000

Advertising and promotion per year

30,000

Commissions (3.5% ofsales)

49,000

What were total fixed costs for2017?

A.

$1,120,000

B.

$651,000

C.

$439,000

D.

$469,000

Salesmix variance= $320,000 (F), salesquantity variance= $210,000 (F), flexiblebudget variance= $100,000 (F), marketsize variance= $80,000 (U), calculate the salesvolume variance.

A.

$530,000 (F)

B.

$500,000 (F)

C.

$710,000 (F)

D.

$610,000 (F)

Hugo, owner of AutomatedFabric, Inc., is interested in using the reciprocal allocation method. The following data from operations were collected foranalysis:analysis:

Budgeted manufacturing overhead costs:

Maintenance M(Support Dept)

$340,000

Personnel P(Support Dept)

$120,000

Weaving W(Weaving Dept)

$690,000

Colorizing C(Colorizing Dept)

$410,000

Services furnished:

By Maintenance(budgeted laborhours):

to Personnel

1,000

to Weaving

7,000

to Colorizing

4,000

By Personnel(Number of employeesserviced):

Plant Maintenance

12

Weaving

38

Colorizing

22

What is the complete reciprocated cost of the PersonnelDepartment? (Do not round any intermediarycalculations.)

A.

$120,000

B.

$180,859

C.

$220,000

D.

$150,411

At the Spring ValleyCompany, the cost of the personnel department has always been charged to production departments based upon number of employees.Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.

Total personnel department costs are $290,000.

Department

A

B

C

Number of employees

65

260

250

Number of new hires

20

18

14

If the number of employees is considered the costdriver, what amount of personnel costs will be allocated to DepartmentA? (Round any intermediary calculations two decimal places and your final answer to the nearestdollar.)

A.

$31,900

B.

$39,314

C.

$131,130

D.

$9,250