FINANCE- Motorcade Company has three service departments

QUESTION

Question 1(1 point)
.0/msohtmlclip1/01/clip_image001.gif” alt=”Description: question 1 unsaved”>

Motorcade Company has three
service departments (S1, S2, and S3) and two production departments (P1 and
P2). The following data relate to Motorcade’s allocation of service
department costs:

Budgeted
Costs

Nbr
of Employees

S1

$3,400,000

75

S2

2,600,000

50

S3

1,000,000

25

P1

150

P2

225

Service department costs are
allocated by the direct method. The number of employees is used as the
allocation base for all service department costs

Calculate the total service department cost allocated to
production department P1
Your Answer:
Question 1 options:

Answer

Question 3(1 point)

Infinity Designs, an interior
design company, has experienced a drop in business due to an increase in interest
rates and a corresponding slowdown in remodeling projects. To stimulate
business, the company is considering exhibiting at the Home and Garden Expo.
The exhibit will cost the company $12,000 for space. At the show, Infinity
Designs will present a slide show on a PC, pass out brochures that are
printed previously, (the company printed more than needed), and show its
portfolio of previous

jobs.

The company estimates that revenue
will increase by $36,000 over the next year as a result of the exhibit. For
the previous year, profit was as follows:

Revenue

$201,000

Less:

Design supplies (variable cost)

$16,000

Salary of Samantha Spade (owner)

80,000

Salary of Kim Bridesdale (full
time employee)

55,000

Rent

18,000

Utilities

6,000

Depreciation of office equipment

3,600

Printing of advertising materials

700

Advertising in Middleton Journal

2,500

Travel expenses other than
depreciation of autos (variable cost)

$2,000

Depreciation of company cars

9,000

Required:

Calculate the impact of the
exhibit on company profit.

Your Answer:
Question 3 options:

Answer

Question 4(1 point)

Each
year, Sunshine Motos surveys 7,500 former and prospective customers regarding
satisfaction and brand awareness. For the current year, the company is
considering outsourcing the survey to Global Associates, who have offered to
conduct the survey and summarize results for $30,000.Craig Sunshine, the
president of Sunshine Motors, believes that Global will do a higher-quality job
than his company has been doing, but is unwilling to spend more than $10,000
above the current costs. The head of bookkeeping for Sunshine has prepared
the following summary of costs related to the survey in the prior year.
Mailing
$17,000

Printing
(done by Lester Print Shop) $4,500
Salary
of Pat Fisher, part-time employee who stuffed envelopes and summarized data
when surveys were returned
(100 hours X $15) $1,500
Share
of depreciation of computer and software used to track survey responses and
summarized results. $1,100
Share
of electricity/phone/etc. based on square feet of space occupied by Pat Fisher
vs. entire company. $500

REQUIRED: What is
the incremental cost of going outside versus conducting the survey as in the
past?

Your Answer:
Question 4 options:

Answer

Question 5(1 point)

Howell
Corporation produces an executive jet for which it currently manufactures a
fuel valve; the cost of the valve is indicated below:

Cost
per Unit

Variable costs

Direct material

$900

Direct labor

600

Variable overhead

300

Fixed costs

Depreciation of equipment

500

Depreciation of building

250

Supervisory salaries

300

The
company has an offer from Duvall Valves to produce the part for $2,000 per unit
and supply 1,000 valves (the number needed in the coming year). If the company
accepts this offer and shuts down production of valves, production workers and
supervisors will be reassigned to other areas. The equipment cannot be used
elsewhere in the company, and it has no market value. However, the space
occupied by the production of the valve can be used by another production group
that is currently leasing space for $55,000 per year.
What
is the incremental savings of buying the valves? (The answer should be stated
in a per-unit format and is a positive number)
Your Answer:
Question 5 options:

Answer

Question 6(1 point)
.0/msohtmlclip1/01/clip_image001.gif” alt=”Description: question 6 unsaved”>
Landmark
Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded
250 pounds of gold and 62,800 pounds of copper. The joint cost related to the
operation was $500,000. Gold sells for $325 per ounce and copper sells for
$0.87 per pound. Allocate the joint costs using relative weight. With
these costs, what is the profit or loss associated with Copper?
Your Answer:
Question 6 options:

Answer

Question 7(1 point)

Landmark Coal operates a mine.
During July, the company obtained 500 tons of ore, which yielded 250
pounds of gold and 63,700 pounds of copper. The joint cost related
to the operation was $500,000. Gold sells for $325 per ounce and copper
sells for $0.91 per pound. Allocate the joint costs using the
relative sales values. With these costs, what is the profit or loss
associated with Copper?

.0/msohtmlclip1/01/clip_image003.gif” alt=”Description: http://edugen.wileyplus.com/edugen/art2/common/pixel.gif”>

.0/msohtmlclip1/01/clip_image004.gif” alt=”Description: http://edugen.wileyplus.com/edugen/art2/common/pixel.gif”>
Your Answer:
Question 7 options:

Answer

ANSWER:

REQUEST HELP FROM A TUTOR