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QuizNote:It is recommended that you save your response as you complete each question.Question 1(1 point)Motorcade Company has three service departments (S1, S2, and S3) and two productiondepartments (P1 and P2). The following data relate to Motorcade’s allocation of servicedepartment costs:BudgetedCostsNbr ofEmployeesS1$3,240,00075S22,560,00050S31,000,00025P1150P2225Service department costs are allocated by the direct method. The number of employees isused as the allocation base for all service department costsCalculate the total service department cost allocated to production department P1Your Answer:Question 1 options:Update3,1,22207,33787,8-16310456915204{‘ID’:{hid_page:’z_153889274877176801010false1
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AnswerSaveQuestion 2(1 point)El Dorado Company has two production plants. Recently, the company conducted an ABM study to determine thecost of activities involved in processing orders for parts at each of the plants. How might an operations manageruse this information to manage the cost of processing orders?Question 2 options:Set up an ABC costing systemIdentify benchmarksCompare the cost to process an order at each plant and the nature of the orders to determineif costs are out of control. If out of control, investigateClose down the plant with the highest cost to increase profitsSaveQuestion 3(1 point)Infinity Designs, an interior design company, has experienced adrop in business due to an increase in interest rates and acorresponding slowdown in remodeling projects. To stimulatebusiness, the company is considering exhibiting at the Home andGarden Expo. The exhibit will cost the company $12,000 forspace. At the show, Infinity Designs will present a slide show ona PC, pass out brochures that are printed previously, (thecompany printed more than needed), and show its portfolio ofpreviousjobs.The company estimates that revenue willincrease by $36,000 over the next year as a2,712,00023
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