The Science Institute has three departments: Biology, Chemistry, and Physics. The institute's controller wants to estimate the cost of operating each department. He has identified several indirect costs that must be allocated to each department including $48,000 of indirect salaries, $7,000 of office supplies, and $39,000 of office rent. There are 500 students in the biology department, 200 in chemistry and 300 in physics (1,000 total students as the allocation base). The amount of cost that should be allocated to the Chemistry Department is

Multiple Choice

$47,000.

$18,800.

$28,200.

There is no correct answer.

The following information was drawn from the accounting records of Marlin Manufacturing Company.

	Product 1		Product 2		Product 3
Direct Material Cost	$55,000		$60,000		$65,000
Direct Labor Cost	$90,000		$100,000		$110,000
Direct Labor Hours	2,400	hours	3,000	hours	3,200	hours

Factory overhead is estimated to be $165,000 and is applied on a basis of direct labor dollars. This overhead cost is not traceable to any particular product. The total cost of Product 1 is

Multiple Choice

$49,500

$194,500

$200,413

$215,350

Saylind Molding paid $1,189,000 in rent for the year. The company's three departments are Headrests, Armrests, and Floor Mats. The accountant has identified two possible cost drivers: the number of employees in each department, and the square footage of space occupied by each department. The number of employees working in each department includes 78 in the Headrests Department, 48 in the Armrests Department and 128 in Floor Mats Department. The departments occupy 14,000, 15,300, and 11,700 square feet, for Headrests, Armrests, and Floor Mats respectively. How much of the rent cost should be allocated to the products made in the Floor Mats department?

Multiple Choice

$339,300

$406,000

$443,700

$446,600