The following data are taken from the management accounting reports of Dulcimer Co.:   Div. A Div. B Div. C Income from operations $1,900,000 $1,450,000 $1,450,000 Total service department charges 1,700,000 1,050,000 1,100,000 If an incentive bonus is paid to

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The following data are taken from the management accounting reports of Dulcimer Co.:

  Div. A Div. B Div. C
Income from operations $1,900,000 $1,450,000 $1,450,000
Total service department charges 1,700,000 1,050,000 1,100,000

If an incentive bonus is paid to the manager who achieved the highest income from operations before service department charges, it follows that
a. Divisions B and C's managers divide the bonus
b. Division B's manager is given the bonus
c. Division A's manager is given the bonus
d. Division C's manager is given the bonus
 
When management seeks to achieve personal departmental objectives that may work to the detriment of the entire company, the manager is experiencing
a. budgetary slack
b. cushions
c. padding
d. goal conflict
 

The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below.



Product
Number of
Units
Labor Hours
Per Unit
Machine Hours
Per Unit
Blinks 1,073 4 4
Dinks 1,859 2 9

All of the machine hours take place in the Fabrication department, which has an estimated overhead of $92,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $82,900.

The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Dinks?

a. $34.94
b. $331.65
c. $9.49
d. $43.68
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