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12-101
122.
The Document Creation Center (DCC) for Atlas Corp. provides document services for three
departments in the St. Louis office. The following budget has been prepared for the
month.
Budgeted usage:
Pages
Documents
Software Development
320,000
2,500
Training
600,000
5,500
Management
480,000
6,000
Costs:
Fixed
$63,000
Variable
$35,000
12-103
123.
The legal department for Trump Corp. provides legal services for four departments in the
Manhattan office. The following budget has been prepared for the month.
Budgeted usage:
Contracts
Pages Reviewed
Purchasing
160
3,200
Marketing
200
7,200
Training
300
9,000
Management
240
2,400
Costs:
Fixed
$267,000
Variable
$105,000
12-105
124.
Waverley Services has three divisions, commercial, retail, and consumer, that share the
common costs of the company's computer server network. The annual common costs are
$1,200,000. You have been provided with the following information for the upcoming year:
Connections
Time on
Network (hours)
Commercial
30,000
120,000
Retail
40,000
150,000
Consumer
50,000
330,000
12-106
125.
Collins Enterprises has four divisions, commercial, retail, research, 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:
12-107
Connections
Time on
Network (hours)
Commercial
60,000
120,000
Retail
80,000
150,000
Research
40,000
100,000
Consumer
100,000
330,000
12-108
126.
Jamison Industries 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:
12-109
Connections
Time on
Network (hours)
Commercial
60,000
120,000
Retail
80,000
150,000
Consumer
100,000
330,000
127.
Markov Engineering 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:
12-110
Connections
Time on
Network (hours)
Commercial
60,000
120,000
Retail
80,000
150,000
Consumer
100,000
330,000
12-112
128.
Sumner Corporation has four divisions, commercial, retail, research, and consumer, that
share the common costs of the company's computer server network. The annual common
costs are $3,500,000. You have been provided with the following information for the
upcoming year:
Connections
Time on
Network (hours)
Commercial
70,000
120,000
Retail
90,000
150,000
Research
20,000
100,000
Consumer
100,000
330,000
12-113
129.
Kingston Industries has four divisions, commercial, retail, research, and consumer, that
share the common costs of the company's computer server network. The annual common
costs are $3,600,000. You have been provided with the following information for the
upcoming year:
Connections
Time on
Network (hours)
Commercial
60,000
100,000
Retail
70,000
150,000
Research
20,000
70,000
Consumer
100,000
330,000
12-115
130.
Roadways Enterprises has two divisions, Production and Support, that share the common
costs of the company's communications network. The annual common costs are
$4,500,000. You have been provided with the following information for the upcoming year:
Calls
Time on
Network (hours)
Production
200,000
240,000
Support
160,000
660,000
12-117
131.
Santa Fe Industries has two divisions, Marketing and Finance, that share the common
costs of the company's communications network. The annual common costs are
$2,250,000. You have been provided with the following information for the upcoming year:
Calls
Time on
Network (hours)
Marketing
50,000
120,000
Finance
40,000
330,000
132.
Talent Engineering has two divisions, Research and Sales, that share the common costs of
the company's communications network. The annual common costs are $2,250,000. You
have been provided with the following information for the upcoming year:
12-118
Calls
Time on
Network (hours)
Research
50,000
60,000
Sales
40,000
165,000
Required (use three decimal places in your calculations):
The cost accountant determined $1,350,000 of the communication network's costs were
fixed and should be allocated based on the number of calls. The remaining costs should be
allocated based on the time on the network. What is the total communication network
costs allocated to each division?
Research: $990,600; Sales: $1,259,400
Feedback:
12-119
133.
The Barton Creek Company has three client-contact departments: Market Research,
Branding, and Promotion. Each department requires the services of the Legal Department
for the contracts that each undertakes. The size of the Legal Department was based on
long-run estimates of contracts. Information on the Legal Department's budgeted and
actual costs is as follows:
The budget for the Legal Department is $300,000 + $10/contract. The budgeted volume
of contracts is as follows:
Market Research
300
Branding
500
Promotion
700
