Reference no: EM133079396

Questions -

Q1. Towson Company manufactures book cases, and each requires 20 board feet of lumber. Towson expects that 1,500 and 1,750 book cases will be built in June and July, respectively. Towson keeps lumber on hand at 40% of the next month's production needs (assume that 40% of June's needs was purchased in May). Use this information to determine number board feet of lumber that Towson Company should buy in June.

Q2. During FY 2021, Adelphi Company reported sales of $400,000, a contribution margin of $6.00 per unit, fixed costs of $120,000, and net income of $30,000. Use this information to determine the number of units Adelphi sold during FY 2021.

Q3. 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 $145,000 and Maintenance Services has costs of $165,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing Department?

Computer Operations 3

Maintenance Services 4

Mixing Department 8

Packaging Department 7