3a)

Parallel Enterprises has collected the following data on one of its products. During the period the company produced 25,000 units. The direct materials price variance is:

Direct materials standard (7 kg. @ $1.60/kg.)	$11.20 per finished unit
Actual cost of materials purchased	$249,000
Actual direct materials purchased and used	142,000 kg.

$31,000 unfavorable.

$52,800 unfavorable.

$52,800 favorable.

$21,800 unfavorable.

$21,800 favorable.

3b)

A company pays $30,000 per period to rent a small building that has 11,500 square feet of space. This cost is allocated to the company's three departments on the basis of the amount of the space occupied by each. Department One occupies 2,300 square feet of floor space, Department Two occupies 3,450 square feet of floor space, and Department Three occupies 5,750 square feet of floor space. If the rent is allocated based on the total square footage of the space, Department One should be charged rent expense for the period of:

$8,900.

$6,000.

$4,600.

$2,530.

$2,300.

3c)

Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:

Expense	Basis for allocation	Amount
Rent	Square feet of floor space	$34,000
Advertising	Amount of dollar sales	$50,000
Administrative	Number of employees	$75,000

The following information is available for its three operating (sales) departments:

Department	Square Feet	Dollar Sales	Number of employees
A	4,000	$310,000	16
B	4,400	$330,000	18
C	4,600	$460,000	20
Totals	13,000	$1,100,000	54

What is the total advertising expense allocated to Department C?

$50,000.

$20,909 .

$24,409.

$22,709.

$10,500.

3d)

Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If allocated maintenance cost is based on floor space occupied by each of the other departments, compute the amount of maintenance cost allocated to the Cutting Department. (Do not round your intermediate computations.)

	Maintenance	Cutting	Assembly	Packaging
Direct costs	$18,000	$30,000	$70,000	$45,000
Sq. ft. of space	500	1,000	2,000	3,000
No. of employees	2	3	16	4

$3,000.

$2,769.

$18,000.

$3,724.

$6,000.