21Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions—Construction, Manufacturing, and Military. The Construction...

21Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions—Construction, Manufacturing, and Military. The Construction

Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, 75% is considered traceable to the three product types within the division—Civil Construction, Residential Construction, and Commercial Construction. The division will calculate an allocation rate to assign traceable costs to each of the three product types based on number of purchase orders processed within each product type. Please refer to the following information:

The amount allocated to the Civil Construction Product Line should be:

A) $20,250.

B) $40,500.

C) $27,000.

D) $54,000.

22 Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions—Construction, Manufacturing, and Military. The Construction

Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, 75% is considered traceable to the three product types within the division—Civil Construction, Residential Construction, and Commercial Construction. The division will calculate an allocation rate to assign the traceable costs to each of the three product types based on number of purchase orders processed within each product type. Please refer to the following information:

The amount allocated to the Residential Construction Product Line should be:

A) $20,250.

B) $40,500.

C) $27,000.

D) $54,000.

23Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions—Construction, Manufacturing, and Military. The Construction

Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, 75% is considered traceable to the three product types within the division—Civil Construction, Residential Construction, and Commercial Construction. The division will calculate an allocation rate to assign the traceable costs to each of the three product types based on number of purchase orders processed within each product type. Please refer to the following information:

The amount allocated to the Commercial Construction Product Line should be:

A) $ 83,250.

B) $ 40,500.

C) $111,000.

D) $ 96,750.

24Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions—Construction, Manufacturing, and Military. The Construction

Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, $144,000 is considered traceable to the three product types within the division—Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here:

The above information is used to complete a performance report, the divisional income statement, for the Construction Division. On that report, the product margin for the Civil Construction product type is:

A) ($3,275).

B) $16,500.

C) ($8,250).

D) ($13,500).

25Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions—Construction, Manufacturing, and Military. The Construction

Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, $144,000 is considered traceable to the three product types within the division—Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here:

The above information is used to complete a performance report, the divisional income statement, for the Construction Division. On that report, the product margin for the Residential Construction product tis:

A) $ 3,000

B) $ 16,500

C) ($8,250)

D) ($13,500)

26Henderson Industrial Products uses a centralized service department for procurement of rawmaterials, servicing all three of its divisions: Construction, Manufacturing, and Military. The Construction Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, $144,000 is considered traceable to the three product types within the division: Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here:

The above information is used to complete a performance report, the divisional income statement, for the Construction Division. On that report, the product margin for the Commercial Construction product type is:

A) $44,875.

B) $17,250.

C) $72,750.

D) ($13,500).

27Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions—Construction, Manufacturing, and Military. The Construction

Division has been allocated a total of $192,000 of costs from the procurement department. Of that amount, $144,000 is considered traceable to the three product types within the division—Civil Construction, Residential Construction, and Commercial Construction. The traceable amounts are further allocated to the three product types within the division as shown here:

The above information is used to complete a performance report, the divisional income statement, for the Construction Division. On that report, the divisional segment margin for the whole Construction Division, including all relevant costs, is:

A) $81,000.

B) $33,000.

C) $48,000.

D) ($15,000).

28Henderson Industrial Products Company has three divisions—Construction, Manufacturing, and

Military. It has also identified costs associated with several common service departments and has traced those costs to each division. The Construction Division Income Statement is shown here:

Henderson is now consolidating the division data into a company income statement. The Manufacturing Division reports division margin of $24,000; the Military Division reports division margin of negative $4,000. In addition to the data from the three divisions, there are common non-traceable costs of $21,000. How much is the total company net operating income?

A) $17,200

B) $43,500

C) $53,000

D) $32,000

29Michael McNaulty is responsible for running the accounting department of a large manufacturing company. The company has multiple divisions and multiple products. McNaulty’s business unit would most accurately be described as a(n):

A)cost center.

B)revenue center.

C)profit center.

D)investment center.

30Linda Diaz is responsible for managing the hand tool product line of a large manufacturing company. Linda’s business unit would most accurately be described as a(n):

A)cost center.

B)revenue center.

C)profit center.

D)investment center.