Question

number 11

What is the margin of safety in dollars? A) $335,664 B) $1,243,200 C) $652,501 D) $907,536 9) Bendel Inc. has an operating leverage of income should increase by about: A) 62.4 % 4.8. If the company's sales increase by 13 % , its net operating B) 47.8 % C) 13.0% D) 2.7 % 10) Alpha Corporation reported the following data for its most recent year: sales, $520,000; variable expenses, $320,000; and fixed expenses, $150,000. The company's degree of operating leverage is closest to: A) 10.00 B) 4.00 C) 2.60 D) 2.00 11) Eccles Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system: Costs: S 268,000 205,000 159,000 $ 632,000 Wages and salaries Depreciation Utilities Total Distribution of resource consumption: Activity Cost Pools Setting Up 25% 25% Total 100 % 100 % 100% Other Assembly 60% 30% 15% 45% 35% Wages and salaries Depreciation Utilities 45% 20% How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost po A) $379,200 D) $254,100 C) $126,400 B) $241,433 ST

Answer 1

Answer to Question 11:

Cost allocated to Assembly Activity = ($268,000 * 60%) + ($205,000 * 30%) + ($159,000 * 20%)
Cost allocated to Assembly Activity = $160,800 + $61,500 + $31,800
Cost allocated to Assembly Activity = $254,100

Option D is correct.