TB MC Qu. 22-128 (Algo) Ultimo Company operates three...

Ultimo Company operates three production departments as profit centers. The following information is available for its most recent year. Department 2's contribution to overhead in dollars is:

	Department 1	Department 2	Department 3
Sales	$ 2,900,000	$ 1,160,000	$ 2,030,000
Cost of goods sold	2,030,000	435,000	870,000
Direct expenses	290,000	116,000	435,000
Indirect expenses	232,000	290,000	58,000

Multiple Choice

• $609,000.

• $1,015,000.

• $29,000.

• $754,000.

• $435,000.

TB MC Qu. 22-142 (Algo) Pleasant Hills Properties is developing...

Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $110,000 each; 125 are street frontage lots and will sell for $80,000. The developer acquired the land for $1,950,000 and spent another $1,550,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using value basis.

Multiple Choice

• $1,887,120.

• $1,666,000.

• $1,715,000.

• $2,128,120.

• $1,531,280.