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Question 1.15 4 point (Instruction Sheet Needed) Quasimodo's operating income for the year under absorption costing is: O $24,100 O $22,600 O $13,600. O $16,000 Question 1.16 4 poin Maurice Corporation has two major business segments; Philippe and Chip. In April, the Philippe business segment had sales revenues of $500,000, variable expenses of $280.000, and traceable fixed expenses of $80,000. During the same month, the Chip business segment had sales revenues of $970,000, variable expenses of $514,000, and traceable fixed expenses of $184,000. The common fixed expenses totaled $280,000 and were allocated as follows: $112,000 to the Philippe business segment and $168,000 to the Chip business segment. A properly constructed segmented income statement in a contribution format would show that the segment margin of the Philippe business segment is: O $140,000 O $108,000 O$28,000 O $280,000 Question 1.17 4 poin Which of the following statements best describes activity based costing: o activity based costing cannot be used in businesses that provide services to its customers, o activity based costing can only be used by very large, international companies o activity based costing focuses on assigning overhead costs o activily based costing must adhere to generaby accepted accounting principles Use the following to answer questions 6 through 10: Pumbaa Inc. sells a single product. Pumbaa's income statement for the most recent year is presented below $120,000 Sales (4,000 units) Less variable expenses Contribution margin Less fixed expenses Operating income 68,000 52,000 Use the following to answer questions 11 and 12 Nala Company is a small one-person company that provides elaborate and imaginative wedding cakes to order for very large wedding receptions. The owner of the company would like to understand the cost structure of the company and has compiled the following records of activity and costs incurred. The owner believes that the number of weddings catered is the best measure of activity Weddings Total Costs Month January February2$3,600 March $3,800 April May June $4,000 $4,300 $4,500 $5,200 12 20

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