QUESTION 1: The centralized employee travel department of Kensy Company has expenses of $435,000. The department has serviced a total of 4,000 travel reservations for the period. The Northeast Division has made 1,800 reservations during the period, and the Pacific Division has made 2,200 reservations.
How much should each division be charged for travel services? Do not round interim calculations.
QUESTION 2: Mandel Company's costs were over budget by $252,000. The company is divided into West and East regions. The East Region's costs were under budget by $74,000.
Determine the amount that the West Region's costs
QUESTIONS 3: Conley Company's costs were under budget by $198,000. The company is divided into North and South regions. The North Region's costs were over budget by $52,000.
Determine the amount that the South Region's costs
QUESTION 4: McBreen Company has income from operations of $96,000, invested assets of $400,000, and sales of $1,200,000. Use the DuPont formula to compute the rate of return on investment.
|a. Profit margin||%|
|b. Investment turnover|
c. Rate of return on investment
QUESTION 5: The centralized computer technology department of Lee Company has expenses of $264,000. The department has provided a total of 2,500 hours of service for the period. The Retail Division has used 1,125 hours of computer technology service during the period, and the Commercial Division has used 1,375 hours of computer technology service. Additional data for the two divisions is provided below:
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