The Salmon Bay Corporation currently uses a manufacturing facility costing $200,000 per year; 80% ofthe facility's capacity is currently being used. A start-up business has proposed a plan that would utilizethe other 20% of the facility and increase the overall costs of maintaining the space by 5%.4) If the stand-alone method were used, what amount of cost would be allocated to the start-up business?A) $40,000B) $50,000C) $40,000D) $42,000

Answer the following questions using the information below:The Cold Spring Harbor Corporation currently leases a corporate suite in an office building for a cost of$180,000 a year. Only 70% of the corporate suite is currently being used. A start-up business hasproposed a plan that would use the other 30% of the suite and increase the overall costs of maintainingthe space by $20,000.6) If the stand-alone method were used, what amount of cost would be allocated to the start-up business?A) $20,000B) $54,000C) $60,000D) $74,000

7) If the incremental method were used, what amount of cost would be allocated to the start-upbusiness?A) $20,000B) $54,000C) $60,000D) $74,000

Multiple Choice QuestionSpring Company uses activity-based costing to allocate their overhead costs. Setup costs of $100,000 are based on number of setups. Factory services of $65,000 are based on square footage. Spring Company has identified 500 setups and has 10,000 square feet in their factory. What is the activity rate for the setup activity cost pool.Multiple choice question.$330.00$16.50$6.50$200.00

Fill in the Blank QuestionFill in the blank question.A company has the following activities and costs: machine setup of $5,000 per setup and factory services of $100 per square foot.  If product 1 uses 2 setups and has 10,000 square feet, overhead allocated to product 1 is $.

A manufacturing firm is preparing its production budget for the year. Projected sales are as follows: Q1 Q2 Q3 Q4 Sales budget (units) 75 122 203 188 The firm's policy is to have finished goods inventory equal to 25% of next month's projected sales. The opening inventory in Q1 is 120 units. How many units need to be produced in Q3? (hint - you need to remember to calculate the opening inventory for Q3)