Citizens Bank has two bank locations: Main and Suburbs. The central office provides check-processing services for the two banks. Information pertaining to the banks is as follows:     Check Processing Main Suburbs Budgeted fixed costs $100,000 – – Budgeted variable rate per hour $         20 – – Normal usage in hours        – 600 400         Actual fixed costs $107,500 – – Actual variable costs $  17,500 – – Actual usage in hours – 550 250 ​ Required: ​ a. Use the direct method to allocate the check-processing center costs to each bank to provide information for setting service charges. b. Use the direct method to allocate the check processing center costs to each bank for performance evaluation purposes. c. Determine the costs of the check-processing center NOT allocated to the two banks. Why were these costs not allocated to the operating units?

Alana Company manufactures books. Manufacturing a book takes 10 units of A1 and 1 unit of A2. Scheduled production of books for the next two months is 1,000 and 1,200 units, respectively. Beginning inventory is 4,000 units of A1 and 30 units of A2. The ending inventory of A1 is planned to decrease 500 units in each of the next two months, and the A2 inventory is expected to increase 5 units in each of the next two months. ​ How many units of A2 are expected in the raw material inventory at the end of the second month?

A key input to the cost of production report is __________ costs.

Controllable costs are those that a manager

Anzalone Corporation adds raw materials to production at the beginning of the process in the Assembly Department. Materials data for this department for May 2018 are as follows:   ​ Costs ​ Units Materials Conversion Work in process, May 1 25,000 $  68,750 $167,650 Started during May 100,000 300,000 903,350 Work in process, May 31 10,000 ​ ​ Beginning inventory was 70 percent complete. Ending inventory was 40 percent complete.  How many equivalent units for conversion costs would there be for Anzalone Corporation in May using the FIFO method?

Departmental __________ is applied to products passing through the department.

A flexible-based budgeting system

Fantasmas Incorporated had the following information: ​ Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         20    — Setups  1,200    60 Engineering hours     52 1,500       Other data:         Total fixed costs (traditional) $600,000       Total fixed costs (ABC) $360,000       Unit selling price      $         60   ​ What is the break-even point in units using ABC?

In a process costing system, which of the following would be TRUE?

Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing process. Each part is custom produced and requires special engineering design activity (based on customer specifications). Once the design is completed, the equipment can be set up for batch production. Once the batch is completed, a sample is taken and inspected to see if the parts are within the tolerances allowed. Thus, the manufacturing process has four activities: engineering, setups, machining, and inspecting. In addition, there is a sustaining process with two activities: providing utilities (plantwide) and providing space. Costs have been assigned to each activity using direct tracing and resource drivers: Engineering $1,000,000 Setups 900,000 Machining 2,000,000 Inspection 800,000 Providing space 250,000 Providing utilities 180,000 ​ Activity drivers for each activity have been identified and their practical capacities listed: Machine hours 25,000 Setups 200 Engineering hours 5,000 Inspection hours 2,500 ​ The costs of facility-level activities are assigned using machine hours. ​ What is (are) the facility-level activity(ies)?