Question 2

Todweed Academy allocates marketing and administrative costs to its three schools based on total annual tuition revenue for the schools:

School	Lower School			Middle School			Upper School			Total
Tuition revenue	$	1,340,000		$	1,140,000		$	1,370,000		$	3,850,000
Marketing and administrative										$	1,540,000

Using revenue as an allocation base, the amount of costs allocated to the Middle School is calculated to be:

Multiple Choice

• $376,000.

• $456,000.

• $536,000.

• $616,000.

• $736,000.

Zhender Inc. manufactures hair brushes that sell at wholesale for $2.60 per unit. Budgeted production in both 2018 and 2019 was 6,200 units. There was no beginning inventory in 2018. The following data summarized the 2018 and 2019 operations:

	2018			2019
Units sold		4,100			6,400
Units produced		6,200			6,200
Costs:
Variable factory overhead per unit	$	0.55		$	0.65
Fixed factory overhead	$	2,790		$	2,790
Variable marketing per unit	$	0.75		$	1.00
Fixed Selling and Administrative	$	650		$	650

Full costing operating income for 2018 is calculated to be: (Do not round intermediate calculations. Round your final answers to whole dollar amounts.)

rev: 04_17_2020_QC_CS-208664

Multiple Choice

• $1,890.

• $2,835.

• $3,325.

• $2,079.

• $2,145.