Question 1

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.
Cost pools:
-Vice President of Finance's office expenses

Accepted Answer

The Operations costs of each department is the most appropriate allocation base for the Vice President of Finance's office expenses because it is a measure of the overall activity of each department.

Question 2

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.
Cost pools:
-Computer operations used in conjunction with manufacturing

Accepted Answer

The most appropriate allocation base for the cost pool of computer operations used in conjunction with manufacturing is the hours of computer use per month per department. This directly correlates the cost of computer operations to the amount of time they are used in each department, providing a fair and accurate method for allocating these costs.

Question 3

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.
Cost pools:
-Personnel Department

Accepted Answer

The number of employees per department is an appropriate allocation base for the Personnel Department costs because it directly correlates with the services provided by the personnel department to each department, such as hiring, training, and managing employee records.

Question 4

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.
Cost pools:
-Manufacturing machinery cost

Accepted Answer

The answer of For each cost pool listed select an...

Question 5

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.
Cost pools:
-Energy costs

Accepted Answer

The answer of For each cost pool listed select an...

Question 6

Answer the following questions using the information below:
Shaghai Tea Products has an exclusive contract with Dubai Distributors. Calamine and Shanghai are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
  Budgeted and actual fixed corporate-sustaining costs are $1,750 and $2,000, respectively.
-What is the actual contribution margin for the month?

Accepted Answer

The answer of Answer the following questions using the information...

Question 7

Answer the following questions using the information below:
Shaghai Tea Products has an exclusive contract with Dubai Distributors. Calamine and Shanghai are two brands of teas that are imported and sold to retail outlets. The following information is provided for the month of March:
  Budgeted and actual fixed corporate-sustaining costs are $1,750 and $2,000, respectively.
-What is the contribution margin for the flexible budget?

Accepted Answer

The contribution margin for the flexible budget is calculated by subtracting variable costs from sales. The correct answer, $8,800, suggests that it is the result of this calculation based on the provided options.

Question 8

Answer the following questions using the information below:
Malaika's Flowering Plants provides the following information for the month of May:
 
-What is the budgeted contribution margin per composite unit for the actual mix?

Accepted Answer

The budgeted contribution margin per composite unit is calculated based on the weighted average of the contribution margins of the individual products in the actual sales mix.

Question 9

Answer the following questions using the information below:
Wassim Flowering Plants provides the following information for the month of May:
 
-What is the budgeted contribution margin per composite unit for the actual mix?

Accepted Answer

The budgeted contribution margin per composite unit is calculated based on the actual sales mix and the contribution margin of each product. The correct calculation results in $9.60.

Question 10

Answer the following questions using the information below:
The XTRA Appliance Manufacturing Corporation manufactures two vacuum cleaners, the Standard and the Super. The following information was gathered about the two products:
 
-What is the budgeted sales-mix percentage for the Standard and the Super vacuum cleaners, respectively?

Accepted Answer

The answer of Answer the following questions using the information...

Question 11

Answer the following questions using the information below:
The Nile Clean Corporation manufactures two types of vacuum cleaners, the Victor for commercial building use and the House-Mate for residences. Budgeted and actual operating data for the year 2014 were as follows:
 
-What is the contribution margin for the flexible budget?

Accepted Answer

The contribution margin for the flexible budget is $5,400,000. This is calculated by subtracting the variable costs from the sales revenue.

Quiz 15: Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company. Cost pools: -Vice President of Finance's office expenses

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company. Cost pools: -Computer operations used in conjunction with manufacturing

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company. Cost pools: -Personnel Department

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company. Cost pools: -Manufacturing machinery cost

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company. Cost pools: -Energy costs

Answer the following questions using the information below: Malaika's Flowering Plants provides the following information for the month of May: -What is the budgeted contribution margin per composite unit for the actual mix?

Answer the following questions using the information below: Wassim Flowering Plants provides the following information for the month of May: -What is the budgeted contribution margin per composite unit for the actual mix?