SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 73) Chalet Ski & Patio manufactures a product that has two parts, X and Y. It is currently considering two alternative proposals related to parts X and Y. The first proposal is for buying part Y. This would free up some of the plant space for the manufacture of more of part X and assembly of the final product. The product vice-president believes the additional production of the final product can be sold at the current market price. No other changes in manufacturing […]

  41) What is the allocated cost to the two departments, respectively, if budgeted usage is the base for fixed costs and actual usage is the base for variable costs? (Use dual-rate method.) Assume that the Cassette and CD Departments used 1,750 and 200 hours, respectively. 41) ______ A) $1,787,240; $204,256 B) $1,815,957; $254,043 C) $1,050,000; $120,000 D) $2,000,126; $294,112 E) $1,787,240; $254,043 42) When choosing between budgeted usage and actual usage as allocation bases, which of the following is TRUE? 42) ______ A) Budgeted rates may lead to user departments outsourcing needed work, rather than rely on an internal […]

  11) One of the important aspects about the dual-rate method is that it allows managers to see how variable and fixed costs behave differently. 11) ______ 12) The user department is responsible for any unfavourable cost variances during the budgeting period if budgeted prices and quantities are used for cost allocation. 12) ______ 13) User departments will be able to determine their allocated costs for each category in advance if budgeted usage is the allocation base. 13) ______ 14) A budgeted rate helps to motivate the manager of a support department. 14) ______ 15) A support department adds value […]

  SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 71) Valley West Amusement Park is evaluating its ticket prices. It is open during the summer months for 15 weeks. The following information pertains to last year's tourist season. Costs are expected to remain the same for this year.   Average tourists per day on Friday thru Tuesday2,500 Average tourists per day on Wednesday and Thursday1,000 Variable operating costs per day when open$ 4,100 Fixed overhead costs per year$180,000 Marketing costs per year$ 62,500 Customer service costs per year$ 5,000   Required:   […]

  5) The Schedule of Accounts Payable is listed alphabetically. 6) The accounts payable subsidiary ledger should equal the control account in the general ledger.   7) The controlling account is found in the subsidiary ledger for all accounts payable.   8) Schedule of Accounts Payable is a list of customer accounts that owe the company money.   9) The Accounts Receivable and Accounts Payable are both controlling accounts.   10) A list showing the ending balances owed to individual creditors is called a Schedule of Accounts Payable.   10.6   Learning Objective 10-6   1) Using the perpetual inventory system, […]