TB MC Qu. 15-86 Ralph's Auto Repair uses time and... Ralph's Auto Repair uses time and material pricing. The body shop, which anticipates 50,000 direct labor hours of activity, has the following data: Annual overhead costs: Material handling and storage $ 18,000 Other overhead costs 84,000 Annual cost of materials used 120, 000 Labor rate per hour, including fringe benefits 27 Hourly charge to achieve profit margin 15 Assuming there is no profit markup on material cost, the amount to be added to each dollar of material cost to obtain the total material charge is: Multiple Choice O $0.13 O $0.15. O $0.50. O $0.60. O None of the answers Is correct.TB MC Qu. 17-43 Stormy Corporation has two service... Stormy Corporation has two service departments ($1 and $2) and two production departments (P1 and P2). and uses the step-down method of cost allocation. Management has determined that $1 provides more service to the firm than $2. and has decided that the number of employees is the best allocation base to use for S1. The following data are available: Department Number of Employees 51 26 52 36 P1 75 P2 189 Which of the following statements is (are) true if $1 and $2 have respective operating costs of $292,000 and $362,000? Multiple Choice O S2 should allocate a portion of its $362,000 cost to $1. O ST's cost should be allocated (l.e., spread) over 300 employees. O ST's cost should be allocated (l.e., spread) over 326 employees. O $2 should allocate a total of $397,040 to P1 and P2. O Both 51's cost should be allocated (l.e., spread) over 300 employees and $2 should allocate a total of $397,040 to Pi and P2