Dartmouth Building Products Inc. provides the following ...

[madam-professor]

Question 1

Corporate administrative costs allocated to a division cost pool are most likely to be ________.
◦ output unit-level costs
◦ facility-sustaining costs
◦ product-sustaining costs
◦ batch-level costs

Question 2

Dartmouth Building Products Inc. provides the following information.

Corporate advertising costs = $850,000
Division A - $5,000,000
Division B - $20,000,000
Number of ads run relevant on Division A products 500
Number of ads run relevant to Division B products 3667

Assume that customers with higher revenues benefited more from corporate advertising costs than customers with lower revenues. What is the allocated corporate costs for Division A?
◦ $748,000
◦ $212,500
◦ $170,000
◦ $850,000

[Yixagurpuldink]

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[Supriya S]

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