Reference no: EM132767919

Questions -

Q1. Peterborough Controls Ltd. currently utilizes a manufacturing facility for? $250,000 per year. The facility is used at 75 percent capacity. The shipping department has proposed a plan in which it would utilize the other 25 percent plant capacity for the? company's shipping plus handling the shipping of several nearby businesses. The? company's consulting firm estimated that the overall costs of maintaining the space would increase by 10 percent. Find the shipping manager is interested in the amount that would be allocated under the incremental method.

A. ?$25,000

B. ?$68,750

C. ?$62,500

D. ?$70,000

E. ?$24,000

Q2. Smith Company and Jones Company currently share an employee dining facility. Jones Company employs fewer people and believes that they should not be required to pay one-half of the? $300,000 costs incurred for the facility. An independent consulting firm stipulated that Smith Company could receive the same services for? $150,000 while? Jones's employees could receive comparable services for? $100,000. What will be? Jones's allocated cost if the stand-alone method is? used?

A. ?$150,000

B. ?$83,333

C. ?$100,000

D. ?$120,000

E. ?$180,000