Accounting Practice Exam: Allocations and Expenses

School: Eckerd College - Course: ACCOUNTING 101 - Subject: Accounting

General Accounting Practice Exam 4 DIRECTIONS: Include below is a chart representing the allocation of various expenses among the five departments of the Health and Human Services Department. Choose one answer to each question based upon the allocation chart below. DivisionPayrollAllocation RentSuppliesGeneral Administration12%10%27%18% Social Services34%38%17%28% Education27%30%18%27% Public Safety27%22%38%27% 1. What amount of supplies expense is allocated to the Public Safety Division if the total supply expense is $9,800? a. $3,724 b. $372.40 c. $1,764 d. $2,646 2. How much more does the Social Services pay in rent than the Administration Division if the total rent expense is $150,000? a. $15,000 b. $72,000 c. $57,000 d. $42,000 3. How much do the Education and Public Safety Division pay combined in payroll allocation if the total payroll expense is $2,500,000? a. $675,000 b. $1,350,000 c. $1,525,000 d. $2,025,000 4. How much more does the Social Services Division pay in payroll allocation than it does in general expenses if the total payroll expense is $2,500,000 and the total general expense is $500,000? a. $150,000 b. $710,000 c. $30,000 d. $990,000 5. If the Education Division is spending $5,850 on supplies what is the total supply expense budget? a. $29,250 b. $10,647 c. $32,500 d. $7,134

Practice Exam 4 - Solutions DivisionPayrollAllocation RentSuppliesGeneral Administration12%10%27%18% Social Services34%38%17%28% Education27%30%18%27% Public Safety27%22%38%27% TOTAL100%100%100%100% (Note:Add a total line to ensure that all percentages total 100%) 1.$3,724. To find the supplies expense allocated to the Public Safety Division you need to look up on the chart where "Supplies" and "Public Safety" meet, 38%. The total expense for supplies is $9,800. To find the portion for Public Safety you will multiply the total expense by the 38% allocated to Public Safety; $9,800 x 0.38 = $3,724. 2.$42,000. To find the rent expense allocated to the Administration and Social Services you need to look up on the chart where "Rent" and "Social Services" meet, 38%, and where "Rent" and "Administration" meet, 10%. The different between the two is 38% - 10% = 28%. You will multiply the total rent expense by the difference between the Social Services and Administration allocations; $150,000 x .28 = $42,000. 3.$1,350,000. To find the payroll allocated to the Education and Public Safety Divisions you need to look up on the chart where "Payroll Allocation" and "Education" meet, 27%, and where "Payroll Allocation" and "Public Safety" meet, 27%. The statement 'combined' means we are looking for the sum of the two, so we should add them together; 27% + 27% = 54%. You will multiply the total payroll allocation by the sum of the Education and Public Safety Divisions allocations to find the answer; $2,500,000 x .54 = $1,350,000.