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    MAS MCQ With Answer

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    Mae Cruz
    The document provides information about the budgeted costs and usage of a copying facility for two departments at the Bonawitz Corporation - the Marketing Department and the Operations Department. The fixed costs of operating the facility are $30,000 per year and the variable costs are $0.03 per copy. The budgeted usage is 60,000 copies for Marketing and 190,000 copies for Operations, totaling 250,000 copies. The actual usage ended up being 40,000 copies for Marketing and 180,000 copies for Operations.

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    MAS MCQ With Answer

    Uploaded by

    Mae Cruz
    151 views1 page
    The document provides information about the budgeted costs and usage of a copying facility for two departments at the Bonawitz Corporation - the Marketing Department and the Operations Department. The fixed costs of operating the facility are $30,000 per year and the variable costs are $0.03 per copy. The budgeted usage is 60,000 copies for Marketing and 190,000 copies for Operations, totaling 250,000 copies. The actual usage ended up being 40,000 copies for Marketing and 180,000 copies for Operations.

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    MAS mcq with answer

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    The document provides information about the budgeted costs and usage of a copying facility for two departments at the Bonawitz Corporation - the Marketing Department and the Operations Department. The fixed costs of operating the facility are $30,000 per year and the variable costs are $0.03 per copy. The budgeted usage is 60,000 copies for Marketing and 190,000 copies for Operations, totaling 250,000 copies. The actual usage ended up being 40,000 copies for Marketing and 180,000 copies for Operations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    151 views1 page

    MAS MCQ With Answer

    Uploaded by

    Mae Cruz
    The document provides information about the budgeted costs and usage of a copying facility for two departments at the Bonawitz Corporation - the Marketing Department and the Operations Department. The fixed costs of operating the facility are $30,000 per year and the variable costs are $0.03 per copy. The budgeted usage is 60,000 copies for Marketing and 190,000 copies for Operations, totaling 250,000 copies. The actual usage ended up being 40,000 copies for Marketing and 180,000 copies for Operations.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 27 THROUGH 30.

    The Bonawitz Corporation has a central copying facility. The copying facility has only two
    users, the Marketing Department and the Operations Department. The following data apply to
    the coming budget year.

    Budgeted costs of operating the copying facility


    for 200,000 to 300,000 copies:
    Fixed costs per year $30,000
    Variable costs 3 cents (.03) per copy
    Budgeted long-run usage in copies per year:
    Marketing Department 60,000 copies
    Operations Department 190,000 copies

    Budgeted amounts are used to calculate the allocation rates.

    Actual usage for the year by the Marketing Department was 40,000 copies and by the
    Operations Department was 180,000 copies.

    27. If a single-rate cost-allocation method is used, what amount of copying facility costs will
    be budgeted for the Marketing Department?
    a. $9,000
    b. $1,800
    c. $7,200
    d. $8,400

    Answer: a
    [(60,000/250,000) x $30,000] + (60,000 x $0.03) = $9,000

    28. If a single-rate cost-allocation method is used, what amount of copying facility costs will
    be allocated to the Marketing Department? Assume actual usage is used to allocate copying
    costs.
    a. $8,400
    b. $9,000
    c. $6,000
    d. $4,800

    Answer: c
    [(60,000/250,000) x $30,000] + (60,000 x $0.03) = $9,000
    $9,000/60,000 copies = $0.15 per copy x 40,000 = $6,000

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