# Abdulkarem Essay

2235 Words Apr 10th, 2013 9 Pages
Fundamentals of Cost and Management Accounting
Part Four: Allocation of Support Department Costs, Common Costs and Revenues
Exercise No. 4
الاسم: الرقم الأكاديمي: رقم الشعبة:
Choose the best answer for every question of the following questions:
1) Max's Movie Store encounters revenue-allocation decisions with its bundled product sales. Here, two or more of the movie videos are sold as a single package. Managers at Max's are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows:

| Stand-Alone Selling Price, |
A) \$687.50
B) \$612.50
C) \$625.00
D) \$825.00
Explanation: B) Refrigerator \$1,225,000 / (\$1,225,000 + \$775,000) × \$1,000 = \$612.50

5) Using the stand-alone method with manufacturing cost per unit as the weight for revenue allocation, what amount will be allocated to the refrigerator?
A) \$500.00
B) \$612.50
C) \$620.00
D) \$775.00
Explanation: D) Refrigerator \$620 / (\$620 + \$180) × \$1,000 = \$775

6) Using the stand-alone method with physical units as the weight for revenue allocation, what amount will be allocated to the refrigerator?
A) \$500
B) \$20
C) \$775
D) \$825