The three service departments (indirect costs) are payroll, sales supervision and maintenance. The actual costs of these departments are as follows: Payroll Sales Supervision Maintenance Salaries and wages $41,000 $ 82,000 $62,000 Utilities $3,500 S 1,600 $ 2,400 Supplies $4,000 $ 2,400 $ 7,500 The two operating departments and their statistics are as follows: Square Number of Net Footage Employees Assets Machining 14,500 78 420,000 Assembly 4,600 52 280,000If you allocate payroll department expenses by number of employees, how much payroll department cost will be allocated to the Machining Department? U 1) $172000 (:3. l$29'100 l/\\l v 3] $24,250 U 4) $10,400 If you allocate Maintenance department costs by square footage, how much of the maintenance cost will be allocated to the assembly department? 1) 17,360 O 2) 54,583 3) 35,950 O 4) 45,474Which of the following statements is true regarding allocating costs from the service departments to operating departments? IN /I 1] The machining department manager would prefer allocating costs eyenly between assembly and machining. I\" \"'I 1 The assembly department manager would prefer allocating costs eyenly between assembly and machining. If] 3] Allocating payroll department costs using number of employees would not be an appropriate approach. I\\ \"41/. The machining department manager would prefer allocating any of the costs based on square footage rather than number of employees. XYZ Manufacturing uses a standard cost system with overhead applied based on direct-labor hours. The manufacturing budget for the production of 5,000 units for the month of June included 10,000 hours of direct labor at $20 per direct labor hour, and $6 per direct labor hour for variable overhead. During June, 4,500 units were produced, using 9,600 direct-labor hours, incurring $53,400 of variable overhead. The rate variance for June for variable overhead would be: 1) $4,200 favorable O 2) $4,200 unfavorable O 3) $3,600 favorable ( 4) $3,600 unfavorableFor variable overhead costs, a rate variance and efficiency variance can be calculated for each: O 1) Cost pool and cost driver O 2) Type of direct material 3) Each hour of direct labor 4) Possible level of production