Question 1

Bradbo allocated the monthly costs of the baking facility to the two restaurants based on the number of tables served in each restaurant during the month using dual allocation and equal sharing of fixed costs. In April, the costs were $36,000, of which $19,000 were fixed. The Pork Palace served 4,400 tables, while the Chicken Hut served 3,600 tables.

The amount of joint cost that should have been allocated to the Pork Palace in April is calculated to be:

Multiple Choice

• $9,600.

• $17,200.

• $18,850.

• $21,600.

• $26,400.

Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total annual revenue from new product developments:

Facility location	Kentucky			Arizona			Illinois			Total
New product revenue	$	66,000,000		$	80,000,000		$	104,000,000		$	250,000,000
Research & Development										$	60,000,000

Using revenue as an allocation base, the amount of costs allocated to the Illinois research facility is calculated to be:

Multiple Choice

• $18,200,000.

• $36,960,000.

• $17,960,000.

• $31,960,000.

• $24,960,000.