1) Towson Company manufactures book cases, and each requires 22 board feet of lumber. Towson expects that

1,900 and 1,550 book cases will be built in June and July, respectively. Towson keeps lumber on hand at 35% of the next month’s production needs. Use this information to determine number board feet of lumber that Towson Company should buy in June. (Round & enter final answers to the nearest whole number.)

2) Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $135,000 and Maintenance Services has costs of $135,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are:

 Computer Operations        4 

 Maintenance Services        3

Mixing Department          8

 Packaging Department      6

3) Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $125,000 and Maintenance Services has costs of $100,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing Department? (round to closest whole dollar) Employees are:

 Computer Operations        4 

 Maintenance Services        4

 Mixing Department         8

 Packaging Department       4

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