In: Accounting
53.
Blaser Corporation had $1,035,000 in invested assets, sales of $1,266,000, operating income amounting to $203,000 , and a desired minimum return on investment of 14%. The return on investment for Blaser Corporation is
Round the percentage to one decimal place.
a.19.6%
b.23.5%
c.12.8%
d.16.0%
52.
ABC Corporation has three support departments with the following costs and cost drivers:
Support Department | Cost | Cost Driver |
Graphics Production | $200,000 | number of copies made |
Accounting | 500,000 | number of invoices processed |
Personnel | 400,000 | number of employees |
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows:
Micro | Macro | Super | |
Revenues | $700,000 | $850,000 | $650,000 |
Direct operating expenses | 50,000 | 70,000 | 100,000 |
Number of copies made | 20,000 | 30,000 | 50,000 |
Number of invoices processed | 700 | 800 | 500 |
Number of employees | 130 | 145 | 125 |
The operating income of the Super Division after all support department allocations will be
a.$325,000
b.$550,000
c.$200,000
d.$300,000
51.
ABC Corporation has three support departments with the following costs and cost drivers:
Support Department | Cost | Cost Driver |
Graphics Production | $200,000 | number of copies made |
Accounting | 500,000 | number of invoices processed |
Personnel | 400,000 | number of employees |
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows:
Micro | Macro | Super | |
Revenues | $700,000 | $850,000 | $650,000 |
Direct operating expenses | 50,000 | 70,000 | 100,000 |
Number of copies made | 20,000 | 30,000 | 50,000 |
Number of invoices processed | 700 | 800 | 500 |
Number of employees | 130 | 145 | 125 |
The support department cost that will be allocated to the Super Division is
a.$100,000
b.$550,000
c.$350,000
d.$125,000
50.
ABC Corporation has three support departments with the following costs and cost drivers:
Support Department | Cost | Cost Driver |
Graphics Production | $200,000 | number of copies made |
Accounting | 500,000 | number of invoices processed |
Personnel | 400,000 | number of employees |
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows:
Micro | Macro | Super | |
Revenues | $700,000 | $850,000 | $650,000 |
Direct operating expenses | 50,000 | 70,000 | 100,000 |
Number of copies made | 20,000 | 30,000 | 50,000 |
Number of invoices processed | 700 | 800 | 500 |
Number of employees | 130 | 145 | 125 |
The support department cost that will be allocated to the Macro Division is
a.$130,000
b.$175,000
c.$305,000
d.$405,000
49.
ABC Corporation has three support departments with the following costs and cost drivers:
Support Department | Cost | Cost Driver |
Graphics Production | $200,000 | number of copies made |
Accounting | 500,000 | number of invoices processed |
Personnel | 400,000 | number of employees |
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows:
Micro | Macro | Super | |
Revenues | $700,000 | $850,000 | $650,000 |
Direct operating expenses | 50,000 | 70,000 | 100,000 |
Number of copies made | 20,000 | 30,000 | 50,000 |
Number of invoices processed | 700 | 800 | 500 |
Number of employees | 130 | 145 | 125 |
The support department allocation rate for the Personnel Department is
a.$3,200
b.$3,077
c.$2,758
d.$1,000
48.
ABC Corporation has three support departments with the following costs and cost drivers:
Support Department | Cost | Cost Driver |
Graphics Production | $200,000 | number of copies made |
Accounting | 500,000 | number of invoices processed |
Personnel | 400,000 | number of employees |
ABC has three operating divisions, Micro, Macro, and Super. Their revenue, cost, and activity information are as follows:
Micro | Macro | Super | |
Revenues | $700,000 | $850,000 | $650,000 |
Direct operating expenses | 50,000 | 70,000 | 100,000 |
Number of copies made | 20,000 | 30,000 | 50,000 |
Number of invoices processed | 700 | 800 | 500 |
Number of employees | 130 | 145 | 125 |
The support department allocation rate for Graphics Production is
a.$6.66
b.$2.00
c.$0.50
d.$10.00
47.
Which of the following is a measure of a manager's performance working in a profit center?
a.the divisional income statements
b.a balance sheet
c.a budget performance report
d.the return on investment and residual income measures
46.
Responsibility accounting reports for profit centers will include
a.costs only
b.revenues, expenses, and operating income or loss
c.expenses and fixed assets
d.revenues only
45.
The following data are taken from the management accounting reports of Dulcimer Co.:
Division A | Division B | Division C | |
Operating income | $1,900,000 | $1,450,000 | $1,450,000 |
Total support department allocations | 1,700,000 | 1,050,000 | 1,100,000 |
If an incentive bonus is paid to the manager who achieved the highest operating income before support department allocations, it follows that
a.Division B's manager is given the bonus
b.Divisions B and C's managers divide the bonus
c.Division A's manager is given the bonus
d.Division C's manager is given the bonus
44.
Operating income for Division L is $250,000, total support department allocations are $400,000, and operating expenses are $2,750,000. The revenues for Division L are
a.$3,000,000
b.$3,400,000
c.$2,750,000
d.$650,000
Answer:
53. A - 19.6%
Return on investment = Operating income / Total invested assets
= $203,000 / $1,035,000
= 19.61%
52. C - $200,000
51. C - $350,000
50. D - $405,000
49. D - $1,000
*Activity based rate = Total overhead cost / Expected use of cost driver
48. B - $2
*Activity based rate = Total overhead cost / Expected use of cost driver