Question $5$ Question $8$

$\frac{0}{0\mathrm{.}5}$ pts

Reign of fire $($ROF$),$ Inc. has three products: Dragon Fire, Wild Fire, and Generic Fire. RO F has allocated indirect expenses as noted below. They allocate Human Resources expenses based on the number of employees in each profit center. They allocate First Aid expenses based on the number of burn injuries incurred in the prior year.

Reign of Fire Financial Information

$\backslash$table$[[\backslash$table$[[$ROF$],[$Financial$],[$Information$]],\backslash$table$[[$Total$],[$Sales and$],[$Expenses$]],\backslash$table$[[$Dragon$],[$Fire$]],\backslash$table$[[$Wild$],[$Fire$]],\backslash$table$[[$Generic$],[$Fire$]],\backslash$table$[[$Human$],[$Resources$],[($HR$)]],$First Aid$],[$Sales$,1,600,000,300,000,500,000,800,000,,],[\backslash$table$[[$Direct$],[$Expenses$]],625,000,125,000,300,000,200,000,50,000,100,000],[\backslash$table$[[$Gross$],[$Profit$]],975,000,175,000,200,000,600,000,(50,000),(100,000)],[\backslash$table$[[$Allocated$],[$Indirect$],[$Expenses$]],,50,000,70,000,100,000,10,000,20,000],[\backslash$table$[[$Number of$],[$Employees$]],10,50,60,,,],[\backslash$table$[[$Number of$],[$Burn$],[$Injuries$]],,3,000,1,500,500,,]]$

How much are the total service department expenses allocated to Dragon Fire?

$77,000$

$61,000$

$42,000$

$72,000$ Incorrect

Question $9$

$\frac{0}{0\mathrm{.}5}$ pts

Reign of fire $($ROF$),$ Inc. has three products: Dragon Fire, Wild Fire, and Generic Fire. RO F has allocated indirect expenses as noted below. They allocate Human Resources expenses based on the number of employees in each profit center. They allocate First Aid expenses based on the number of burn injuries incurred in the prior year.

Reign of Fire Financial Information

$\backslash$table$[[\backslash$table$[[$ROF$],[$Financial$],[$Information$]],\backslash$table$[[$Total$],[$Sales and$],[$Expenses$]],\backslash$table$[[$Dragon$],[$Fire$]],\backslash$table$[[$Wild$],[$Fire$]],\backslash$table$[[$Generic$],[$Fire$]],\backslash$table$[[$Human$],[$Resources$],[($HR$)]],$First Aid$],[$Sales$,1,600,000,300,000,500,000,800,000,,],[\backslash$table$[[$Direct$],[$Expenses$]],625,000,125,000,300,000,200,000,50,000,100,000],[\backslash$table$[[$Gross$],[$Profit$]],975,000,175,000,200,000,600,000,(50,000),(100,000)],[\backslash$table$[[$Allocated$],[$Indirect$],[$Expenses$]],,50,000,70,000,100,000,10,000,20,000],[\backslash$table$[[$Number of$],[$Employees$]],10,50,60,,,],[\backslash$table$[[$Number of$],[$Burn$],[$Injuries$]],,3,000,1,500,500,,]]$

What is Net Income Before Taxes for Wild Fire?

$69,000$

$130,000$

$94,000$

$139,000$

Service department costs should be allocated to

Profit Centers only

Service Departments only

Cost Centers only

Profit Centers and Service Departments