Question $1$

Nerds for Hire, Inc. $($NFH$),$ has three profit centers, Coding, Marketing, and Accounting, and

three cost centers, Hiring, Security, and C$-$Suite $($the executives$).$ Below are the revenue and

direct expenses for NFH$.$

NFH Sales and Direct Expenses

NFH has the following indirect expenses, which are allocated.

Rent of $$64,000,$ which is allocated over square feet used by each department

Utilities of $$28,000,$ which is allocated over square feet used by each department

Corporate Training of $$50,000,$ which is allocated over the number of employees working in

each department

NFH has a total of $10,000$ square feet and $250$ employees.

What is the allocation rate for Rent? $($round to $2$ decimals$)$

$$ per square foot

What is the allocation rate for Utilities? $($round to $2$ decimals$)$

per square foot

What is the allocation rate for Corporate Training?

$ per employee

Round all answers to two decimal places Question $2$

Use the information from the last question to complete this question.

Below are the square feet used by each department and the number of employees in each

department

Allocate the indirect expenses to each of the departments

Round your answers to the nearest whole number.

Question $3$

Based on your calculations above, what are the total expenses $($direct $+$ indirect$)$ in each of

the three service departments $($cost centers$)?$

Use whole numbers only. Do not use the dollar $($$$)$ sign.

Total Service Department Expenses to be Allocated Question $4$

$1\mathrm{.}5$ pts

Use the information from the previous questions to answer this question.

NFH allocated service department expenses as follows.

Hiring expenses are allocated by number of new hires.

Security expenses are allocated by number of square feet.

C Suite expenses are allocated by the number of employees in each department.

Coding hired $20$ new employees during the period. Marketing hired $7$ new employees.

Accounting hired $13$ new employees.

What is the allocation rate for Hiring?

q

per new hire.

What is the allocation rate for Security?

$

per square foot

What is the allocation rate for C Suite?

per employee

Use whole dollars only

Question $5$

$3$ pts

Use the information from the previous questions to allocate Service Department Costs. Use whole dollars only. Do not use the dollar $($$$)$ sign.

NFH Allocations and Net Income

$\backslash$table$[[$Net Income,Coding,Marketing,Accounting$],[$Sales$,1,000,000,800,000,1,200,000],[$Direct Materials,$20,000,50,000,35,000],[$Direct Labor,$400,000,300,000,450,000],[\backslash$table$[[$Depreciation $-],[$Equipment$]],20,000,2,000,15,000],[$Supplies$,5,000,25,000,10,000],[\backslash$table$[[$Total Direct$],[$Expenses$]],445,000,377,000,510,000],[$Gross Profit,$555,000,423,000,690,000],[\backslash$table$[[$Total Indirect$],[$Expenses$]],31,800,43,580,],[$Hiring$,,,400],[$Security$,,,]]$ Question $5$

Use the information from the previous questions to allocate Service Department Costs. Use

whole dollars only. Do not use the dollar $($$$)$ sign.

NFH Allocations and Net IncomeQuestion $6$

NFH had decided to make their three profit centers into investment centers. Use the

information below to calculate Return on Investment $($ROI$),$ Residual Income, Profit Margin,

and Investment Turnover for each of the three investment centers.

Round ROI and investment turnover to two decimal places. Use whole numbers for all other

answers. Do not use the dollar $($$$)$ sign.

Investment Center Analysis