(Q): Calla, Inc. has multiple business segments. Which of the following statements is true? Multiple Choice Both traceable and common fixed costs should be charged to business segments. Traceable fixed costs are incurred to support more than one business segment and thus should not be charged to any particular segment. Fixed costs traceable to a business segment can become common costs if the business segment is divided into smaller segments. The company's segmented income statement is usually prepared in the traditional format. If a business segment is entirely eliminated, a true common fixed cost will decrease. Sira Company makes and sells a product that regularly sell for $38.95 each. The following information is available for the current year: Annual maximum capacity in units 6,500 Current annual production in units 6,200 Budgeted absorption cost per unit: Direct materials $9.95 Direct labor $2.65 Manufacturing overhead (70% variable) $3.40 A new customer approached the company with a one-time all-or-nothing order for 700 units. The special-order units are identical to the regular ones, with one exception: the customer would like their business logo engraved on each unit. It will cost $4 to engrave the logo. (Q): The minimum total sales revenue from the special order that would be acceptable to the company is: (A): $ Abelia Corp. has two service departments and two operating departments. The company allocates service departmental costs to operating departments using the step-down method. Operating data for these departments for last year are as follows: Departmental costs Number of employees Machine-hours Service Departments Personnel Maintenance $144,000 $84,000 35 30 OO 0 Operating Departments Cutting Finishing $12,000 $49,600 60 90 210 150 Personnel costs are allocated first on the basis of number of employees and Maintenance costs are allocated second on the basis of machine-hours. (Q) What is the total Finishing Department cost after allocation? (A) $