True or False questions

15) 15) Buzz's Educational Software Outlet sells two or more of the video games as a single package. Managers are keenly interested in individual product-profitability figures. Information pertaining to three bundled products and the stand-alone prices is as follows: Cost Reading Fun Math Fun Analysis Stand-Alone Selling Price $20 $31 $46 $3.75 $4.35 $5.00 Package 1. Reading Fun & Math Fun 2. Reading Fun & Analysis 3. All three Packaged Price $41 $52 $73 Using the stand-alone method with selling price as the weight for revenue allocation, what amount of revenue will be allocated to Math Fun in the package that contains all three products? (Do not round any intermediary calculations.) A) $23.33 B) $31.00 C) $29.39 D) $16,51 16) 16) Goldfarb's Book and Music Store has two service departments, Warehouse and Data Center, Warehouse Department costs of $350,000 are allocated on the basis of budgeted warehouse-hours. Data Center Department costs of $100,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $112,500 and $135,000 respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Production Support Departments Departments Warehouse Data Center Music Books Department Department $112,50 $135,00 Budgeted costs $350,000 $100,000 0 0 Budgeted warehouse-hours NA 560 1100 Number of computer hours 270 NA 870 1070 Using the direct method, what amount of Warehouse Department costs will be allocated to Department Books? (Do not round any intermediary calculations.) A) $170,679 B) $143,657 C) $206,343 D) $135,000 1580 17) 17) When using the direct allocation method, a cost accountant would A) allocate complete reciprocated costs B) not allocate support department costs to other support departments C) use information about reciprocal services provided among support departments and therefore could generate inaccurate estimates of the cost of operating departments D) allocate support department costs to other support departments 18) 18) Under the dual-rate cost-allocation method, when fixed costs are allocated based on actual usage then. A) user-division managers can better plan for the short-run and for the long-run B) the costs of unused capacity are highlighted C) variations in one division's usage affect another division's allocation D) user-division managers are motivated to make accurate long-run usage forecasts