cost accounting quiz 339074

Name: Section: ACT 5704 – WEB and WEB 2 Cost Accounting Summer Term, 2013 Quiz Two: Chapters 7, 8, 10, 11; 14 – 16 100 Points Instructions: Type your name above in the space provided. Answer the following multiple choice questions by typing the best answer in the space provided below. Do not submit the complete Quiz – only submit this answer sheet. Each question is worth 6 2/3 points. You may use your textbook but you are not allowed to discuss the Quiz with anyone. Good luck! 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Use the following to answer questions 1 and 2: Spacer Company has two service departments and two operating departments. Budgeted costs and budgeted activity in the various departments for last year are shown below: ??Custodial??Cutting?Assembly????Services?Cafeteria?Department?Department???Departmental costs ?$50,400?$28,000?$120,000?$200,000???Square feet occupied ?500?1,000?4,000?5,000???Number of employees ?10?15?75?100???Machine hours ???10,000?15,000?? Service department costs are allocated to operating departments with the costs of Custodial Services allocated on the basis of square feet of space occupied and the costs of the Cafeteria on the basis of number of employees. The departmental costs for the cutting and assembly departments are overhead costs. Predetermined overhead rates in the Cutting and Assembly departments are based on machine hours. 1. Assume that the company uses the direct method of allocation. The predetermined overhead rate in the Assembly Department would be closest to: A) $16.27 B) $15.00 C) $15.87 D) $16.00 2. Assume that the company uses the step method of allocation with Custodial Services allocated first. The amount of Custodial Services cost allocated to the Assembly Department would be: A) $0 B) $28,000 C) $24,000 D) $25,200 3. Product X 47 is one of the joint products in a joint manufacturing process. Management is…