Reliance Corporation sold 4,300 units of its product at a price of $18 per unit. Total variable cost per unit is $10.00, consisting of $9.25 in variable production cost and 0.75 in variable selling and administrative cost. Compute contribution margin for the company.

$34,400

$43,000

$77,400

$39,775

$46,225

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Purchasing department expense to be allocated to Fabrication.

	Purchasing	Maintenance	Fabrication	Assembly
Operating costs	$49,000	$28,200	$113,000	$79,000
No. of purchase orders			14	6
Sq.ft. of space			4,150	1,850

$26,950.

$8,695.

$14,700.

$19,505.

$34,300.

Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period:

	Service Depts.		Production Depts.
	Payroll	Maintenance	Cutting	Assembly
Direct costs	$20,800	$26,500	$78,500	$109,400
No. of personnel		17	17	51
Sq. ft. of space			10,400	15,400

The total cost of operating the Cutting Department for the current period is:

$14,680.

$16,529.

$4,160.

$95,019.