1.Matrix Company has a Maintenance Department that maintains the machines in departments A and B. Next year Department A is budgeted to have 6,000 machine-hours of activity and Department B is budgeted to have 24,000 machine-hours. Fixed costs in the Maintenance Department are budgeted at $60,000 per year and are incurred in order to support peak period activity. Department A requires 25% of the peak period capacity and Department B requires 75% of the peak period capacity. How much of the fixed cost of the Maintenance Department should be charged to Department B?
a. $45,000
b. $30,000
c. $48,000
d. $60,000
2.Bonniwell Corporation has two divisions: the Delta Division and the Alpha Division. The Delta Division has sales of $620,000, variable expenses of $359,600, and traceable fixed expenses of $229,200. The Alpha Division has sales of $820,000, variable expenses of $541,200, and traceable fixed expenses of $172,900. The total amount of common fixed expenses not traceable to the individual divisions is $122,000. What is the company's net operating income?
a. $539,200
b. $15,100
c. $137,100
d. $417,200