87.
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the
common costs of the company’s computer server network. The annual common costs are
$2,400,000. You have been provided with the following information for the upcoming year:
Connections
Time on
Network (hours)
Commercial
60,000
120,000
Retail
80,000
150,000
Consumer
100,000
330,000
88.
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the
common costs of the company’s computer server network. The annual common costs are
$2,400,000. You have been provided with the following information for the upcoming year:
Connections
Time on
Network (hours)
Commercial
60,000
120,000
Retail
80,000
150,000
Consumer
100,000
330,000
89.
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the
common costs of the company’s computer server network. The annual common costs are
$2,400,000. You have been provided with the following information for the upcoming year:
Connections
Time on
Network (hours)
Commercial
60,000
120,000
Retail
80,000
150,000
Consumer
100,000
330,000
90.
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the
common costs of the company’s computer server network. The annual common costs are
$2,400,000. You have been provided with the following information for the upcoming year:
Connections
Time on
Network (hours)
Commercial
60,000
120,000
Retail
80,000
150,000
Consumer
100,000
330,000
91.
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the
common costs of the company’s computer server network. The annual common costs are
$2,400,000. You have been provided with the following information for the upcoming year:
Connections
Time on
Network (hours)
Commercial
60,000
120,000
Retail
80,000
150,000
Consumer
100,000
330,000
92.
Mesa Telcom has three divisions, commercial, retail, and consumer, that share the
common costs of the company’s computer server network. The annual common costs are
$2,400,000. You have been provided with the following information for the upcoming year:
Connections
Time on
Network (hours)
Commercial
60,000
120,000
Retail
80,000
150,000
Consumer
100,000
330,000
93.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and
document services for three departments in the Minneapolis office. The following budget
has been prepared for the year.
Available capacity
8,000,000 pages
Budgeted usage:
Software
Development
1,600,000 pages
Training
3,000,000 pages
Management
2,400,000 pages
Cost equation
$280,000 + $0.03 per
page
94.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and
document services for three departments in the Minneapolis office. The following budget
has been prepared for the year.
Available capacity
8,000,000 pages
Budgeted usage:
Software
Development
1,600,000 pages
Training
3,000,000 pages
Management
2,400,000 pages
Cost equation
$280,000 + $0.03 per
page
95.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and
document services for three departments in the Minneapolis office. The following budget
has been prepared for the year.
Available capacity
8,000,000 pages
Budgeted usage:
Software
Development
1,600,000 pages
Training
3,000,000 pages
Management
2,400,000 pages
Cost equation
$280,000 + $0.03 per
page
96.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and
document services for three departments in the Minneapolis office. The following budget
has been prepared for the year.
Available capacity
8,000,000 pages
Budgeted usage:
Software
Development
1,600,000 pages
Training
3,000,000 pages
Management
2,400,000 pages
Cost equation
$280,000 + $0.03 per
page
97.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and
document services for three departments in the Minneapolis office. The following budget
has been prepared for the year.
Available capacity
8,000,000 pages
Budgeted usage:
Software
Development
1,600,000 pages
Training
3,000,000 pages
Management
2,400,000 pages
Cost equation
$280,000 + $0.03 per
page
98.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and
document services for three departments in the Minneapolis office. The following budget
has been prepared for the year.
Available capacity
8,000,000 pages
Budgeted usage:
Software
Development
1,600,000 pages
Training
3,000,000 pages
Management
2,400,000 pages
Cost equation
$280,000 + $0.03 per
page
99.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and
document services for three departments in the Minneapolis office. The following budget
has been prepared for the year.
Available capacity
8,000,000 pages
Budgeted usage:
Software
Development
1,600,000 pages
Training
3,000,000 pages
Management
2,400,000 pages
Cost equation
$280,000 + $0.03 per
page
100.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and
document services for three departments in the Minneapolis office. The following budget
has been prepared for the year.
Available capacity
8,000,000 pages
Budgeted usage:
Software
Development
1,600,000 pages
Training
3,000,000 pages
Management
2,400,000 pages
Cost equation
$280,000 + $0.03 per
page
101.
The Document Creation Center (DCC) for Arlington Corp. provides photocopying and
document services for three departments in the Minneapolis office. The following budget
has been prepared for the year.
Available capacity
8,000,000 pages
Budgeted usage:
Software
Development
1,600,000 pages
Training
3,000,000 pages
Management
2,400,000 pages
Cost equation
$280,000 + $0.03 per
page
102.
Darren Corporation’s Maintenance Department provides services to the company’s two
operating divisions – the Paints Division and the Stains Division. The variable costs of the
Maintenance Department are budgeted based on the number of cases produced by the
operating departments. The fixed costs of the Maintenance Department are budgeted
based on the number of cases produced by the operating departments during the peak
period. Data appear below:
Maintenance Department:
Budgeted variable cost
$2 per
case
Budgeted total fixed cost
$830,000
Paints Division:
Percentage of peak period capacity
required
30%
Actual cases
20,000
Stains Division:
Percentage of peak period capacity
required
70%
Actual cases
63,000
For performance evaluation purposes, how much Maintenance Department cost should
be charged to the Paints Division at the end of the year?
12–78
103.
The fixed costs of Black Company’s personnel department are allocated to operating
departments on the basis of direct labor-hours. The following data have been provided:
Operating
Department
X
Y
Direct labor-hours – Long-
run average
15,000
10,000
Direct labor-hours – Actual
10,000
6,000
104.
Poole Corporation’s Maintenance Department provides services to the company’s two
operating divisions – the Paints Division and the Stains Division. The variable costs of the
Maintenance Department are budgeted based on the number of cases produced by the
operating departments. The fixed costs of the Maintenance Department are budgeted
based on the number of cases produced by the operating departments during the peak
period. Data appear below:
Maintenance Department:
Budgeted variable cost
$5 per
case
Budgeted total fixed cost
$558,000
Actual total variable cost
$322,504
Actual total fixed cost
$561,490
Paints Division:
Percentage of peak period capacity
required
30%
Budgeted cases
15,000
Actual cases
15,040
Stains Division:
Percentage of peak period capacity
required
70%
Budgeted cases
47,000
Actual cases
46,980
For performance evaluation purposes, how much Maintenance Department cost should
be charged to the Stains Division at the end of the year?
Variable cost charges:
105.