The Bonawitz Corporation has a central copying facility The copying facility has only two users, the Marketing Department and the Operations Department The following data apply to the coming budget year Budgeted costs of operating the copying facility for 200,000 to 300,000 copies Fixed costs per year $30,000 Variable costs 3 cents ( 03) per copy Budgeted long run usage in copies per year Marketing Department 60,000 copies Operations Department 190,000 copies Actual usage for the year by the Marketing Department was 40,000 copies and by the Operations Department was 180,000 copies If a dual rate cost allocation method is used, what amount of copying facility costs will be allocated to the Operations Department Use the application methodology that best measures the responsible use of the copying facilitys services $28,200 $28,500 $29,945 $30,245 Pam's Stables used two different predictor variables (trainer hours and number of horses) in two different equations to evaluate the cost of training horses The most recent results of the two regressions are as follows Trainer's hours Variable Coefficient Standard Error t Value Constant $913 32 $198 12 4 61 Predictor Variable $20 90 $2 94 7 11 r2 0 56 Number of horses Variable Coefficient Standard Error t Value Constant $4,764 50 $1,073 09 4 44 Predictor Variable $864 98 $247 14 3 50 r2 0 83 What is the estimated total cost for the coming year if 16,000 trainer hours are incurred and the stable has 400 horses to be trained, based on the best cost driver $ 47,238 12 $ 99,929 09 $335,313 32 $350,756 50 The Glass Shop, a manufacturer of large windows, is experiencing a bottleneck in its plant Setup time at one of its workstations has been identified as the culprit A manager has proposed a plan to reduce setup time at a cost of $72,000 The change will result in 8,000 additional windows The selling price per window is $18, direct labour costs are $8 per window, variable overhead is $2 per window and the cost of direct materials is $5 per window Assume all units produced can be sold Which of the following explains the best approach that should be taken in this situation The proposal should be rejected because incremental costs exceed incremental benefits by $32,000 The proposal should be accepted as it provides a net benefit of $32,000 The proposal should be rejected because incremental costs exceed incremental benefits by $48,000 The proposal should be accepted as it provides a net benefit of $72,000

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The Bonawitz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data

The Bonawitz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget year:

Budgeted costs of operating the copying facility for 200,000 to 300,000 copies:
Fixed costs per year	$30,000
Variable costs	3 cents (.03) per copy
Budgeted long-run usage in copies per year:
Marketing Department	60,000 copies
Operations Department	190,000 copies

Actual usage for the year by the Marketing Department was 40,000 copies and by the Operations Department was 180,000 copies. If a dual-rate cost allocation method is used, what amount of copying facility costs will be allocated to the Operations Department? Use the application methodology that best measures the responsible use of the copying facilitys services..

$28,200
$28,500
$29,945
$30,245

Pam's Stables used two different predictor variables (trainer hours and number of horses) in two different equations to evaluate the cost of training horses. The most recent results of the two regressions are as follows:

Trainer's hours:

Variable	Coefficient	Standard Error	t-Value
Constant	$913.32	$198.12	4.61
Predictor Variable	$20.90	$2.94	7.11

r2 = 0.56

Number of horses:

Variable	Coefficient	Standard Error	t-Value
Constant	$4,764.50	$1,073.09	4.44
Predictor Variable	$864.98	$247.14	3.50

r2 = 0.83

What is the estimated total cost for the coming year if 16,000 trainer hours are incurred and the stable has 400 horses to be trained, based on the best cost driver?

$ 47,238.12
$ 99,929.09
$335,313.32
$350,756.50

The Glass Shop, a manufacturer of large windows, is experiencing a bottleneck in its plant. Setup time at one of its workstations has been identified as the culprit. A manager has proposed a plan to reduce setup time at a cost of $72,000. The change will result in 8,000 additional windows. The selling price per window is $18, direct labour costs are $8 per window, variable overhead is $2 per window and the cost of direct materials is $5 per window. Assume all units produced can be sold. Which of the following explains the best approach that should be taken in this situation?
1. The proposal should be rejected because incremental costs exceed incremental benefits by $32,000.
2. The proposal should be accepted as it provides a net benefit of $32,000
3. The proposal should be rejected because incremental costs exceed incremental benefits by $48,000
4. The proposal should be accepted as it provides a net benefit of $72,000