Page 1 Quiz – Chapter 4B Use the following to answer questions 1-4: The Uinta Company has two service departments and two operating departments. The following data are available from last year: Service Depts. Operating Depts. 1 2 X Y Departmental costs........ $63,000 $42,000 $200,000 $100,000 Number of transactions. 10,000 12,000 14,000 16,000 Square feet occupied ..... 2,000 1,000 3,000 2,000 The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied respectively. No distinction is made between fixed and variable costs. 1. Assuming that Uinta allocates service department costs by the direct method, the total overhead costs allocated from Department 1 to Department X are: A) $18,000. B) $25,200. C) $42,000. D) $29,400. 2. Assuming that Uinta allocates service department costs by the direct method, the total overhead costs allocated from Department 2 to Department Y are: A) $22,400. B) $16,800. C) $42,000. D) $14,000. 3. Assume that Uinta allocates service department costs by the step method, starting with Department 1. The total overhead costs allocated from Department 1 to Department Y are: A) $12,115. B) $21,000. C) $24,000. D) $33,600. 4. Assume that Uinta allocates service department costs by the step method, starting with Department 1. The total overhead costs allocated from Department 2 to Department Y are: A) $18,000. B) $24,000. C) $21,000. D) $25,200.Page 2 THE FOLLOWING INFORMATION APPLIES TO THE QUESTION 5 BELOW. Alfred, owner of Hi-Tech Fiberglass Fabricators Inc. is interested in using the reciprocal allocation method. The following data from operations were collected for analysis: Budgeted manufacturing overhead costs: Plant Maintenance PM (Support Dept) $350,000 Data Processing DP (Support Dept) $75,000 Machining M (Operating Dept) $225,000 Capping C (Operating Dept) $125,000 Services furnished: By Plant Maintenance (budgeted labor-hours): to Data Processing 3,500 to Machining 5,000 to Capping 8,200 By Data Processing (budgeted computer time): to Plant Maintenance 600 to Machining 3,500 to Capping 600 5. What is the complete reciprocated cost of the Plant Maintenance Department? A $393,750 B $369,459 C $365,000 D
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