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methods for allocating service department costs to other departments are A) step-down, indirect and reciprocal allocation B) direct,step-up and reciprocal allocation C) step-down, direct and reciprocal allocation D) step-up, indirect and simultaneous equations Answer 28. Who is usually responsible for sales activity variances for income? A) operating managers in factory B) marketing managers C) research and development function D) product design function 29. Zebron Company is considering the following investment Initial capital investment Estimated useful life Estimated disposal value in 3 years Estimated annual savings in cash operating costs(end of year) $200,000 3 years $1,000 $100,000 10% 24869 0.7513 Minimum desired rate of return Present value of ordinary annuity of one, 3 periods at 1 Present value of one, 3 periods at 10% Assume straight-line depreciation is used. Ignore income taxes. The net present value of the investment is A) $48,690 B)$49,441 C) $49,690 D) $101,000 30. Todd Company has two production departments called Assembly and Finishing. The maintenance department serves both production departments. Maintenance costs are allocated based on labor hours Budgeted fixed costs for the maintenance department are $30,000. Budgeted variable costs for the maintenance department are $5.00 per labor hour. Other relevant data follow Capacity available Capacity used 15,000 lbor hours 9,000 lbor hours 20,000 labor hours15,000 labor hours 15,000 labor hours Actual maintenance department costs: Fixed Variable 536,000 $100,000 nt of variable maintenance department costs allocated to the Finishing Department should be A) 537500 B) S42.000 C) 545,000 D) $75,000

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