Marsden Company has three departments occupying the following amount of floor space: \[\begin{array} { l l } \text { Department } 1 & 15,000 \text { sq.ft. } \\ \text { Department } 2 & 10,000 \text { sq. ft. } \\ \text { Department } 3 & 25,000 \text { sq. ft. } \end{array}\] How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round intermediate calculations.)

A) $100,000 B) $50,000 C) $66,667 D) None of the answers are correct. A) $100,000 B) $50,000 C) $66,667 D) None of the answers are correct.

Alleghany Community College operates four departments. The square footage used by each department is shown below: $\begin{array}{lc} \text { Department }&\text {Square Footage }\\ \text { Accounting } & 3,000 \\ \text { Marketing } & 4,000 \\ \text { Technology } & 6,000 \\ \text { Sciences } & \underline{3,000}\\ \text { Total }& \underline{16,000} \end{array}$ Alleghany's annual building rental cost is $320,000. What amount of rent expense should be allocated to the Sciences Department?

A) $60,000 B) $80,000 C) $120,000 D) $106,667 A) $60,000 B) $80,000 C) $120,000 D) $106,667

Exam 12: Cost Accumulation, Tracing, and Allocation

Pets 'n Pals is attempting to determine the cost of operating a particular store. Which of the following costs would be classified as an indirect cost?

(Multiple Choice)

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Question 201

Which of the followings statements is correct regarding direct and indirect costs?

(Multiple Choice)

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Question 202

Marsden Company has three departments occupying the following amount of floor space: Department 1 15,000 sq.ft. Department 2 10,000 sq. ft. Department 3 25,000 sq. ft. How much store rent should be allocated to Department 3 if total rent is equal to $200,000? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 203

Haskins Company employs material handling employees who move materials between production divisions at a labor cost of $360,000 a year. It is estimated that these employees move 600,000 pounds of material per year. If 60,000 pounds are moved in March, how much of the material handling cost should be assigned to products made in March? (Do not round intermediate calculations.)

(Multiple Choice)

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Question 204

Which of the following regarding direct costs is a correct statement?

(Multiple Choice)

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Question 205

Jiminez Company paid its annual property tax of $11,900 on its manufacturing facility in January. The company expects to make 5,200 units of product during the year. During January, 1,300 units of product were produced. Based on this information: (Do not round intermediate calculations.)

(Multiple Choice)

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Question 206

The selection of the most appropriate cost driver often requires considerable judgment in the absence of a strong cause-and-effect relationship.

(True/False)

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Question 207

A manager believes that the number of units sold drives the company's selling costs. The number of units sold would be referred to as the cost driver.

(True/False)

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Question 208

Alleghany Community College operates four departments. The square footage used by each department is shown below: Department Square Footage Accounting 3,000 Marketing 4,000 Technology 6,000 Sciences Total Alleghany's annual building rental cost is $320,000. What amount of rent expense should be allocated to the Sciences Department?

(Multiple Choice)

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Question 209

Which of the following costs generally can be traced directly to units of product?

(Multiple Choice)

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Question 210

Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department?

(Multiple Choice)

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Question 211

Showing 201 - 211 of 211

Pets 'n Pals is attempting to determine the cost of operating a particular store. Which of the following costs would be classified as an indirect cost?

Which of the followings statements is correct regarding direct and indirect costs?

Which of the following regarding direct costs is a correct statement?

Jiminez Company paid its annual property tax of $11,900 on its manufacturing facility in January. The company expects to make 5,200 units of product during the year. During January, 1,300 units of product were produced. Based on this information: (Do not round intermediate calculations.)

The selection of the most appropriate cost driver often requires considerable judgment in the absence of a strong cause-and-effect relationship.

A manager believes that the number of units sold drives the company's selling costs. The number of units sold would be referred to as the cost driver.

Which of the following costs generally can be traced directly to units of product?

Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department?

An Introduction to Accounting

Accounting for Accruals and Deferrals

Accounting for Merchandising Businesses

Internal Controls, Accounting for Cash, and Ethics

Accounting for Receivables and Inventory Cost Flow

Accounting for Long-Term Operational Assets

Accounting for Liabilities

Proprietorships, Partnerships, and Corporations

Financial Statement Analysis

An Introduction to Management Accounting

Cost Behavior, Operating Leverage, and Profitability Analysis

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Planning for Capital Investments

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