QUESTION 1

Borsetta, Inc. manufactures two kinds of bagstotes and satchels. The company allocates manufacturing overhead using a single plantwide rate with direct labor cost as the allocation base. Estimated overhead costs for the year are $25,500. Additional estimated information is given below.

	Totes	Satchels
Direct materials cost per unit	$30	$43
Direct labor cost per unit	$54	$64
Number of units	520	370

Calculate the amount of overhead to be allocated to Satchels, if the actual units produced and direct labor costs equal the estimated amounts. (Round any percentages to two decimal places and your final answer to the nearest dollar.)

a		$13,835
b		$472
c		$23,680
d		$11,667

QUESTION 2

Companies in which owners or top executives make all of the planning, directing and controlling decisions are ________companies.

a		decentralized
b		segmented
c		centralized
d		formalized

QUESTION 3

Step Up Ladders Company provides the following financial information:

Income from operations	$250,000
Interest expense	49,000
Gains/(losses) on sale of equipment	2800
Net income	198,200
Total assets at Jan. 1	2,700,000
Total assets at Dec .31	3,500,000

Calculate return on investment based on the information given above. (Round your answer to two decimalplaces.)

a		6.39%
b		9.26%
c		7.14%
d		8.06%