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Chapter 7--Allocating Costs of Support Departments and Joint
Products
Student: ___________________________________________________________________________
1. Common costs are mutually beneficial costs, used in the output of two or more services or products.
True False
2. Allocation increases total costs.

True False
3. Producing departments create products and services to make and sell.

True False
4. Producing departments provide essential services for support departments.

True False
5. Causal factors are variables or activities within a producing department that stimulate the incurrence of
support costs.
True False
6. A single changing rate uses the fixed costs of the support department.
True False
7. The use of a multiple charging rate is needed, one for variable costs, and one for fixed costs.
True False
8. Dual rates combine the fixed and variable costs.

True False
9. Support department fixed costs are allocated on the basis of original capacity.
True False
10. Budgeted rates are allocated based on original capacity.

True False
11. The three methods of allocating support center costs to producing departments are the direct, sequential, and
reciprocal methods
True False
12. The direct method is the most difficult way to allocate costs to the support departments.
True False
13. The sequential method allocates costs in ranking order of support departments.
True False
14. The reciprocal method of allocation recognizes only some of the support departments’ interactions.
True False
15. Allocation is not necessary when using JIT manufacturing.

True False
16. The overhead rate may be computed once allocation from support service cost to producing department has
been performed.
True False
17. Departmental overhead rate is computed by dividing the budgeted base by the total overhead in a producing
department.
True False
18. Departmental overhead is applied to products passing through the department.
True False
19. The choice of allocation method depends on an evaluation of costs and benefits, and circumstances.
True False
20. Joint production processes result in the output of two or more products produced simultaneously.
True False
21. Joint products are two or more products produced simultaneously by the same process.
True False
22. The split-off point is the ending point of a joint product process.
True False
23. Costs that are easily traced to individual products are called separable costs.
True False
24. Under the physical units method, joint costs are distributed to products on the basis of some physical
measure.
True False
25. The weight factor addresses the advantages of the physical units method.
True False
26. __________ are mutually beneficial costs to joint product costing.

________________________________________
27. Activities or variables within a producing department that provoke the incurrence of support costs are called
__________ .
________________________________________
28. The __________ charging rate combines variable and fixed costs of support departments.
________________________________________
29. Support department __________ costs are allocated on the basis of original capacity.
________________________________________
30. The __________ method of allocating costs, allocates costs from support to producing departments.
________________________________________
31. The __________ method of allocating costs assumes “step down” interdepartmental services.
________________________________________
32. After allocation, total overhead in producing department is divided by the budgeted measure of activity to
get the __________ overhead rate.
________________________________________
33. Departmental __________ is applied to products passing through the department.

________________________________________
34. Products produced simultaneously by the same process up to a point are called __________ products.
________________________________________
35. A secondary product recovered during the manufacturing of a primary product during a joint process is
called a(n): __________ .
________________________________________
36. Support department cost to the producing departments is(are) called:

A. direct materials
B. direct labor
C. activity driver
D. common cost
37. A common cost occurs
A. when only one product or service is benefited.
B. when different resources are used to produce one output.
C. when the same resource is used in the output of two or more outputs.
D. when a resource is used by two or more companies.
38. Support departments

A. are responsible for manufacturing the products sold to customers.
B. work directly on the products of the firm.
C. provide services directly to customers.
D. provide essential services to the producing departments.
39. Examples of support departments include all of the following EXCEPT

A. maintenance.
B. personnel.
C. machining.
D. data processing.
40. Which of the following departments is NOT a support department?

A. food services
B. bottling
C. health services
D. security
41. The activities or variables within a producing department that provoke the incurrence of support costs are
called:
A. Causal factors
B. Common costs
C. Cost objectives
D. Activity output
42. Examples of producing departments include all of the following EXCEPT

A. mixing.
B. molding.
C. packaging.
D. accounting.
43. Support department costs are accounted for in which one of the following ways?
A. They are allocated directly to units of product.
B. They are allocated to producing departments and then allocated to units of product.
C. They are allocated to units of product and then allocated to the producing departments.
D. They are expensed as incurred.
44. Which of the following would be the most appropriate base for allocating the costs of the housekeeping
department?
A. machine hours
B. direct labor hours
C. square feet
D. number of employees
45. Which of the following would be the most appropriate base for allocating the costs of the maintenance
department?
A. machine hours
B. direct labor hours
C. number of employees
D. square feet
46. A possible causal factor to use when allocating cafeteria costs would be
A. number of square feet.
B. number of direct labor hours.
C. number of employees.
D. appraised value of square footage.
47. The major objective(s) of allocations are

A. to motivate managers.
B. to compute product line profitability.
C. to value inventory.
D. all of the above.
48. Which of the following is NOT a major objective of allocation as identified by the IMA?
A. to detect fraud
B. to obtain a mutually agreeable price
C. to compute product-line profitability
D. to value inventory
49. Which of the following cost categories would most likely use machine hours as its activity driver?
A. personnel
B. maintenance
C. purchasing
D. both a and b
50. Which of the following cost categories would most likely use the number of employees or new hires as its
activity driver?
A. maintenance
B. purchasing
C. personnel
D. accounting
51. Which of the major objectives of allocation as identified by the IMA would NOT be relevant in a service
organization?
A. to obtain a mutually agreeable price
B. to compute product-line profitability
C. to predict the economic effects of planning and control
D. all of the above are objectives of allocation
52. The Ruling Company assigns plant administration costs to the production departments based on the number
of employees. Which of the following would NOT be a good combination of common costs with an activity
driver?
A. personnel department costs based on number of employees
B. purchasing department costs based on machine hours
C. cafeteria costs based on meals served
D. warehouse costs based on the value of materials stored
53. If the costs of support departments are NOT allocated to producing departments,
A. product costs would be understated.
B. GAAP requirements would not be met.
C. managers of producing departments may tend to overconsume services.
54. Rules of financial reporting (GAAP) require

A. that direct manufacturing costs and a fair share of indirect manufacturing costs be assigned to products.
B. that only producing department costs be assigned to products.
C. that only direct manufacturing costs be assigned to products.
D. that only indirect manufacturing costs be assigned to products.
55. What is one of the potential disadvantages of NOT allocating support department costs to production
departments?
A. total costs would not be accumulated
B. managers may tend to overconsume these services
C. this would encourage managers to monitor support department performance
D. managers will use a support service at a more efficient level
56. Which of the following is NOT a benefit of the costs of support departments being allocated to production
departments?
A. The allocation assists producing departments’ use of support departments at a more efficient level.
B. Allocation of support department costs encourages managers of production departments to monitor
performance of the support department.
C. The allocation helps each department select the correct level of support service consumption.
D. Management will use the information to support out-sourcing all support services.
57. What is the most likely action to be taken by a company when a support department is NOT as cost effective
as an outside source?
A. The company may force managers to use the internal support department.
B. The company may force managers to use an external source for the service.
C. The company may elect not to supply the service internally.
D. all of the above
58. Figure 7-1
Luxurious Department Store incurred $6,000 of indirect advertising costs for its operations. The following data
has been collected for 2014 for its three departments:
Sportswear Lingerie Appliances

Sales $160,000 $120,000 $120,000
Direct advertising costs $ 7,000 $ 12,000 $ 3,000
Newspaper ad space 62% 20% 18%
Refer to Figure 7-1. How much of the indirect advertising costs will be allocated to the Sportswear Department if newspaper ad space is the activity
driver?
A. $6,000
B. $4,340
C. $3,720
D. $2,280
59. Refer to Figure 7-1. How much of the indirect advertising costs will be allocated to the Lingerie Department
if direct advertising costs is the activity driver? (Round to the nearest dollar if necessary)
A. $3,000
B. $3,273
C. $6,000
D. $12,000
60. If a support department's costs were budgeted to be $150,000 and actual costs incurred by the support
department were $200,000, the total amount of the support department's costs that should be allocated to other
departments is
A. $350,000.
B. $200,000.
C. $150,000.
D. $50,000.
61. Figure 7-2
Long Distance Company’s travel department had the following budgeted costs for the coming year:
Variable costs $34 per trip

Fixed costs $143,360
The budgeted usage is given below:

Yearly Trips Monthly Peak Trips
West Sales Territory 110 trips 5
Midwest Sales Territory 170 trips 12
Southern Sales Territory 150 trips 15
Eastern Sales Territory 130 trips 8
The actual usage is given below:
West Sales Territory 100 trips

Midwest Sales Territory 150 trips
Southern Sales Territory 160 trips
Eastern Sales Territory 140 trips
Refer to Figure 7-2. Using a single charging rate, determine the rate per trip.
A. $256
B. $290
C. $295
D. $261
E. $34
62. Figure 7-2



Refer to Figure 7-2. Using a single charging rate, how much will be charged to the West Sales Territory?
A. $29,000
B. $31,900
C. $29,500
D. $28,160
E. none of the above
63. Figure 7-2



Refer to Figure 7-2. Using both a fixed and variable rate, what are the respective rates for fixed and variable
per trip for the West Sales Territory? Fixed costs are allocated on the basis of monthly peak trips.
A. 12.5%; $34
B. 19.6%; $34
C. 18.2%; $34
D. 19%; $34
64. Figure 7-2



Refer to Figure 7-2. Using both a fixed and variable rate with fixed costs allocated on the basis of monthly
peak trips, what will the West Sales Territory be charged for the year? (round to the nearest dollar)
A. $31,498
B. $21,320
C. $29,492
D. $30,638
65. If the allocation is for product costing, the allocation of variable support department costs would be
calculated as
A. Actual rate ´ Actual usage.
B. Actual rate ´ Budgeted usage.
C. Budgeted rate ´ Actual usage.
D. Budgeted rate ´ Budgeted usage.
66. Figure 7-3
Hanover and Trust, a large law firm, utilizes an internal centralized printing center to serve its three
departments: Individuals, Corporate, Trust. The costs of the printing department include fixed costs of $69,190
and variable costs of $0.04 per page. Total estimated print pages are estimated to be 330,000 pages. Individuals
are estimated to use 130,000; Corporate will use
165,000 and 35,000 from the trust area.
Refer to Figure 7-3. Assuming a single charging rate is used, what would be the charge per page? (round to the
nearest cent)
A. $.04
B. $.25
C. $.21
D. none of the above amounts
67. Figure 7-3
Refer to Figure 7-3. Assuming a single charging rate is used, if the Corporate Department used 190,000 pages,
what would be the printing charges for the Corporate Department? (Round to the nearest cent.)
A. $47,500
B. $39,900
C. $7,600
D. $42,195
68. Figure 7-3
Refer to Figure 7-3. Assuming a single charging rate is used, if the total pages printed were 340,000, which of
the following statements is correct?
A. The printing costs allocated to all departments would be $85,000.
B. The printing department would expect to incur costs of $82,790.
C. Any extra amount charged is due to the fixed costs being charged as if they were variable costs.
69. If the allocation is for performance evaluation, the allocation of variable support department costs would be
calculated as
A. Actual rate ´ Actual usage.
B. Actual rate ´ Budgeted usage.
C. Budgeted rate ´ Actual usage.
D. Budgeted rate ´ Budgeted usage.
70. FIGURE 7-4
Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support
department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the
support department are allocated to each copy center on the basis of total copies made.
During the first month, the costs of the support department were expected to be $200,000. Of this amount,
$60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of
$128,000 and actual fixed costs of $72,000.
Normal and actual activity (copies made) are as follows:
Copy Center 1 Copy Center 2

Normal activity (copies) 600,000 400,000
Actual activity (copies) 500,000 440,000
Refer to Figure 7-4. For purposes of performance evaluation, fixed costs allocated to Copy Center 1 are
A. $36,000.
B. $37,600.
C. $30,000.
D. $32,800.
71. FIGURE 7-4

Refer to Figure 7-4. For purposes of performance evaluation, fixed costs allocated to Copy Center 2 are
A. $28,800.
B. $60,000.
C. $51,200.
D. $24,000.
72. FIGURE 7-4

Refer to Figure 7-4. Support department costs NOT allocated to the two copy centers are
A. $22,000.
B. $9,840.
C. $8,400.
D. $6,000.
73. A company incurred $40,000 of common fixed costs and $60,000 of common variable costs. These costs are
to be allocated to Departments A and B. Data on capacity provided and capacity used are as follows:
Capacity Provided Capacity Used

Department in Hours in Hours
A 800 640
B 480 640
Assume that common fixed costs are to be allocated to Departments A and B on the basis of capacity provided and that common variable costs are to
be allocated to Departments A and B on the basis of capacity used. The fixed and variable costs allocated to Department A are
Fixed Variable
A. $20,000 $37,500
B. $20,000 $30,000
C. $25,000 $30,000
D. $25,000 $37,500
74. FIGURE 7-5
Stronghold, Inc., operates a brochure business at two different locations. Stronghold, Inc., has one support
department that is responsible for cleaning, service, and maintenance of its printing equipment. The costs of the
support department are allocated to each brochure center on the basis of total brochures made.
Normal and actual activity (brochures made) are as follows:
Brochure Center 1 Brochure Center 2

Normal activity (brochures) 1,200,000 800,000
Actual activity (brochures) 1,000,000 880,000
Refer to Figure 7-5.For purposes of performance evaluation, fixed costs allocated to

Brochure Center 1 are
A. $60,000.
B. $72,000.
C. $65,600.
D. $75,200.
75. FIGURE 7-5

Refer to Figure 7-5. For purposes of performance evaluation, fixed costs allocated to
Brochure Center 2 are
A. $57,600.
B. $120,000.
C. $48,000.
D. $102,400.
76. FIGURE 7-5

Refer to Figure 7-5. Support department costs NOT allocated to the two brochure centers are
A. $16,800.
B. $19,680.
C. $44,000.
D. $8,000.
77. A company incurred $80,000 of common fixed costs and $120,000 of common variable costs. These costs
are to be allocated to Departments A and B. Data on capacity provided and capacity used are as follows:

A 400 320
B 240 320
Assume that both fixed and variable costs are allocated on the basis of capacity used. The fixed and variable costs allocated to Department A are
Fixed Variable
A. $40,000 $60,000
B. $50,000 $60,000
C. $40,000 $75,000
D. $50,000 $75,000
are to be allocated to Departments XX and YY. Data on capacity provided and capacity used are as follows:

XX 500 400
YY 300 400
Assume that common fixed costs are to be allocated to Departments XX and YY on the basis of capacity provided and that common variable costs
are to be allocated to Departments XX and YY on the basis of capacity used. The fixed and variable costs allocated to Department XX are
Fixed Variable
A. $75,000 $112,500
B. $75,000 $90,000
C. $60,000 $112,500
D. $60,000 $90,000
are to be allocated to Departments XX and YY. Data on capacity provided and capacity used are as follows:

XX 500 400
YY 300 400
Assume that both fixed and variable costs are allocated on the basis of capacity used. The fixed and variable costs allocated to Department XX are
Fixed Variable
A. $75,000 $112,500
B. $75,000 $90,000
C. $60,000 $112,500
D. $60,000 $90,000
80. If a support department's costs were budgeted to be $75,000 and actual costs incurred by the support
department were $70,000, the total amount of the support department's costs that should be allocated to other
departments is
A. $145,000.
B. $75,000.
C. $70,000.
D. $5,000.
81. Basic guidelines that should be followed when allocating support department costs include
A. actual costs should always be used for allocations.
B. budgeted costs, not actual costs, should be allocated.
C. service department costs should never be allocated at the beginning of the period.
D. both a and b.
82. Fixed support department costs should be allocated based on
A. current actual usage of service.
B. current budgeted usage of service.
C. practical capacity of user departments.
83. Which of the following methods allocates support department costs?

A. direct allocation method
B. reciprocal allocation method
C. sequential allocation method
D. all of the above
84. The following information pertains to Famous Company:
Support P
Departments r
o
d
u
c
i
n
g
D
e
p
a
r
t
m
e
n
t
s
Personnel MFabrication A
a s
i s
n e
t m
e b
n l
a y
n
c
e
Budgeted overhead $40,000 $$140,000 $
7 1
2 6
, 0
0 ,
0 0
0 0
0
Direct labor hours 2,000 28,000 1

, 0
5 ,
0 0
0 0
0
Machine hours - - 12,000 8

,
0
0
0
Number of employees 4 515 2
5
Famous Company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and
maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labor hours.
What is the amount of maintenance costs allocated to the Assembly Department using the direct method? (Round amounts to dollars.)
A. $14,400.
B. $48,000.
C. $28,800.
D. $38,160.
85. The following information pertains to Longboat Company:
Support P
Departments r
o
d
u
c
i
n
g
D
e
p
a
r
t
m
e
n
t
s
a s
i s
n e
t m
e b
n l
a y
n
c
e
7 1
2 6
, 0
0 ,
0 0
0 0
0

, 0
5 ,
0 0
0 0
0

,
0
0
0
5
Longboat Company does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of employees, and
maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labor hours. (Round amounts to dollars.)
If the direct method is used to allocate support department costs, the predetermined overhead rate for the Fabrication Department (rounded to two
decimal places) would be
A. $28.80.
B. $24.78.
C. $7.28.
D. $5.40.
86. Fairfield Company allocates common Building Department costs to producing departments (P1 and P2)
based on space occupied, and it allocates common Personnel Department costs based on the number of
employees. Space occupancy and employee data are as follows:
Building Personnel Dept. P1 Dept. P2

Space occupied 2,000 ft. 10,000 ft. 120,000 ft. 70,000 ft.
Employees 6 10 80 50
If Fairfield Company uses the direct allocation method, the ratio representing the portion of building costs allocated to Department P1 is
A. 190,000/202,000.
B. 2,000/120,000.
C. 120,000/202,000.
D. 120,000/190,000.
87. Evergreen Company has two support departments (S1 and S2) and two producing departments (P1 and P2).
Department S1 costs are allocated on the basis of number of employees, and Department S2 costs are allocated
on the basis of space occupied expressed in square feet.
Data on direct department costs, number of employees, and space occupied are as follows:
S1 S2 P1 P2
Direct dept. costs $7,500 $11,000 $27,500 $30,000
Number of employees 10 5 20 25
Space occupied (sq. ft.) 1,000 500 1,500 2,500
If Evergreen uses the direct method, the ratio representing the portion of Department S2 allocated to P1 is
A. 1,500/5,000.
B. 1,500/4,000.
C. 1,500/5,500.
D. 1,500/2,000.
88. Figure 7-6
Golden Leaves Company has two support departments, Maintenance Department (MD) and Personnel
Department (PD), and two producing departments, P1 and P2. The Maintenance Department costs of $30,000
are allocated on the basis of standard service used. The Personnel Department costs of $4,500 are allocated on
the basis of number of employees. The direct costs of Departments P1 and P2 are $9,000 and $15,000,
respectively.
Data on standard service hours and number of employees are as follows:
MD PD P1 P2
Standard service hours used 100 50 300 150
Direct labor hours 50 50 250 250
Refer to Figure 7-6. Using the direct method, the cost of the Maintenance Department allocated to Department P1 is
A. $15,000.
B. $10,000.
C. $20,000.
D. $30,000.
89. Figure 7-6
respectively.
MD PD P1 P2
Refer to Figure 7-6. Using the direct method, the cost of the Personnel Department allocated to Department P1 is
A. $2,250.
B. $4,500.
C. $2,132.
D. $2,700.
90. Figure 7-6
respectively.
MD PD P1 P2
Refer to Figure 7-6. Using the sequential method, if the support department with the highest percentage of interdepartmental service is allocated
first, the cost of the support departments allocated to Department P1 is
A. $12,750.
B. $24,000.
C. $21,750.
D. $20,295.
91. Figure 7-6
respectively.
MD PD P1 P2
Refer to Figure 7-6. Using the sequential method, if the support department with the highest percentage of interdepartmental service is allocated
first, the cost of the Maintenance Department allocated to Department P1 is
A. $20,000.
B. $30,000.
C. $4,500.
D. $18,000.
92. Figure 7-6
respectively.
MD PD P1 P2
Refer to Figure 7-6. What is the combined total department costs for the producing departments after allocation of the support departments?
A. $24,000
B. $34,500
C. $58,500
D. $26,000
93. Figure 7-6
respectively.
MD PD P1 P2
Refer to Figure 7-6. What are the total overhead costs associated with P2 after allocating the Maintenance and Personnel Departments using the
direct method?
A. $37,250
B. $27,250
C. $25,000
D. $15,000
94. Andover,, Inc., has two producing departments. Each producing department is held responsible for a share
of the costs of a support department.
Actual and budgeted data are as follows:
Support department hours used:

Department L 12,000
Department M 4,000
Total hours 16,000
Support department costs:

Actual support department costs $48,000
Budgeted fixed department costs $20,000
Budgeted variable rate per hour $2.50
Normal support department usage is 8,000 hours each for Department L and Department M. Assuming the direct method is used and the purpose is
product costing, support department costs allocated to Department L are
A. $30,000.
B. $20,400.
C. $24,800.
D. $20,000.
95. Andover, Inc., has two producing departments. Each producing department is held responsible for a share of
the costs of a support department.
Actual and budgeted data are as follows:
Support department hours used:

Department X 12,000
Department Y 4,000
Total hours 16,000
Support department costs:

Actual support department costs $48,000
Budgeted fixed department costs $20,000
Budgeted variable rate per hour $2.50
Normal support department usage is 8,000 hours each for Department X and Department Y. Assuming the direct method is used and the purpose is
performance evaluation, support department costs allocated to Department X are
A. $45,000.
B. $36,400.
C. $40,000.
D. $36,000.
96. Astoria Savings & Loans of New York has three revenue-generating departments: Consumer accounts,
Commercial accounts, and Loans. The bank also has three service areas: administration, personnel, and
accounting. The direct costs per month and the interdepartmental service structure are shown below:
Percentage of
Service Used by
Dept. Costs Admin. Pers. Acctg. Consumer Comm’l Loans
Administration $40,000 - 10 10 40 20 20
Personnel 23,000 10 - 10 20 40 20
Accounting 30,000 10 10 - 20 20 40
Consumer 41,000
Commercial 25,000
Loans 16,000
How much cost would be allocated to the Commercial account area from administration using the direct method?
A. $40,000
B. $5,000
C. $10,000
D. $20,000
97. Which of the following allocation methods assumes “step-down” interdepartmental services?
A. direct method
B. sequential method
C. reciprocal method
D. all of the above
98. Which of the following would NOT be a criteria used to rank departments to determine order of allocation
under the sequential method?
A. Rank the supporting departments in order of the amount of service rendered, from the greatest to the least.
B. Rank the supporting departments in order of the support services rendered, measured by the direct costs of
each support department with the department with the highest cost rendering the greatest service.
C. Determine the total cost of a support department, both direct and allocated from other support departments,
before ranking.
D. Rank the supporting departments based on a percentage of service they render to other service departments.
99. Lennon Company has two support departments, Maintenance Department and Personnel Department, and
two producing departments, X and Y. The Maintenance Department costs of $30,000 are allocated on the basis
of standard service used. The Personnel Department costs of $6,000 are allocated on the basis of number of
employees. The direct costs of Departments X and Y are $18,000 and $30,000, respectively.
Maint. Person. Dept. Dept.

Dept. Dept. X Y
Predetermined overhead rates for Departments X and Y, respectively, are based on direct labor hours.
What is the overhead rate for Department X assuming the direct method is used?
A. $47.00
B. $82.00
C. $152.00
D. $164.00
100. Which of the following allocation methods fully recognizes services that support departments provide to
each other?
A. reciprocal method
B. sequential method
C. direct method
D. all of the above
101. The Savings Bank of Sarasota has three revenue-generating departments: checking accounts, savings
accounts, and loans. The bank also has three service areas: administration, personnel, and accounting. The direct
costs per month and the interdepartmental service structure are shown below:
Percentage of
Service Used by
Dept. Costs Admin. Pers. Acctg. Check. Sav. Loans
Administration $40,000 - 10 10 40 20 20
Personnel 23,000 10 - 10 20 40 20
Accounting 30,000 10 10 - 20 20 40
Checking 41,000
Savings 25,000
Loans 16,000
The Savings Bank of Sarasota uses the sequential (step) method and the service departments are allocated in the following order: administration,
personnel, and accounting. How much cost would be allocated to the loan area from the personnel department using the sequential/step method?
(Round to two decimal places.)
A. $4,600.00
B. $6,000.00
C. $5,111.11
D. $7,666.67
102. Tec-Pro Company has two support departments (S1 and S2) and two producing departments (P1 and P2).
S1 S2 P1 P2
When Tec-Pro uses the sequential method, the support department allocated first is the one with the highest percentage of interdepartmental service.
The choice of the department allocated first is determined by the comparison of the following ratio for S1 and S2, respectively:
A. 5/50; 1,000/5,000
B. 5/60; 1,000/5,500
C. 10/50; 1,000/5,000
D. 10/55; 500/4,500
103. McHugh Company allocates common Building Department costs to producing departments (P1 and P2)
based on space occupied, and it allocates common Personnel Department costs based on the number of
employees. Space occupancy and employee data are as follows:
Building Personnel Dept. P1 Dept. P2

Space occupied 2,000 ft. 10,000 ft. 120,000 ft. 70,000 ft.
Employees 6 10 80 50
If McHugh Company uses the sequential allocation method and the support department with the highest percentage of interdepartmental services is
allocated first, the ratio representing the portion of Personnel Department costs allocated to Department P2 is
A. 50/130.
B. 90/140.
C. 50/140.
D. 50/146.
104. Rodriguez Manufacturing prices its products at full cost plus 40 percent. The company operates two
support departments and two producing departments. Budgeted costs and normal activity levels are as follows:
Support Departments Producing

Departments
A B CD
Overhead costs $20,000 $50,000 $$120,000
9
0
,
0
0
0
Square feet 2,000 2,400 12,000

4
,
0
0
0
6
0
Direct labor hours - - 16,400
0
,
0
0
0
Machine hours - - 10,800
6
,
0
0
0
Support Department A's costs are allocated based on square feet, and Support Department B's costs are allocated based on number of employees.
Department C uses direct labor hours to assign overhead costs to products, while Department D uses machine hours.
One of the products the company produces requires 4 direct labor hours per unit in Department C and no time in Department D. Direct materials for
the product cost $45 per unit, and direct labor is $20 per unit.
If the sequential method of allocation is used and the company follows its usual pricing policy, the selling price of the product would be (round
service allocations to the nearest whole dollar and the costs per unit to two decimal places)
A. $113.52.
B. $159.38.
C. $108.46.
D. $162.52.
105. Oxide Company has two support departments (S1 and S2) and two producing departments (X and Y).
Department S1 serves Departments S2, X, and Y in the following percentages, respectively: 10%, 35%, 55%.
Department S2 serves Departments S1, X, and Y in the following percentages, respectively: 6%, 50%, and 44%.
Direct department costs for S1, S2, X, and Y are $15,000, $8,000, $105,000, and $97,500, respectively.
What is S1's cost equation?

A. S1 = $8,000 + 0.10S2
B. S1 = $8,000 + 0.06S2
C. S1 = $15,000 + 0.10S2
D. S1 = $15,000 + 0.06S2
106. Oxide Company has two support departments (S1 and S2) and two producing departments (X and Y).
What is S2's cost equation?

A. S2 = $8,000 + 0.10S1
B. S2 = $8,000 + 0.06S1
C. S2 = $15,000 + 0.10S1
D. S2 = $15,000 + 0.06S1
107. Hunghi Company has three support departments whose direct department costs are $35,000, $45,000, and
$55,000, respectively, and two producing departments whose direct department costs are $400,000 and
$360,000, respectively. The combined total department cost for the producing departments after allocation of
the support departments is
A. $360,000.
B. $760,000.
C. $895,000.
D. $135,000.
108. Howard Company has two support departments (S1 and S2) and two producing departments (P1 and P2).
S1 S2 P1 P2
If Howard used the reciprocal method, the algebraic equation expressing the total costs allocated from S1 is
A. S1 = $7,500 + 0.10S2.
B. S1 = $7,500 + 0.20S2.
C. S1 = $10,000 + 0.20S2.
D. S1 = $10,000 + 0.10S2.
109. Abound Company has two support departments (S1 and S2) and two producing departments (X and Y).
What are the total costs to be allocated from Department S1?

A. $15,573
B. $800
C. $9,500
D. $15,000
110. Abound Company has two support departments (S1 and S2) and two producing departments (X and Y).
What are the total costs to be allocated from Department S2?

A. $8,000
B. $9,557
C. $900
D. $15,573
111. The following information pertains to Amon Schrock Corporation:
Support P
Departments r
o
d
u
c
i
n
g
D
e
p
a
r
t
m
e
n
t
s
a s
i s
n e
t m
e b
n l
a y
n
c
e
1 3
4 2
4 0
, ,
0 0
0 0
0 0

, 0
0 ,
0 0
0 0
0
6
,
0
0
0
0 0
0
Amon Schrock Corporation does not divide costs into fixed and variable components. Personnel costs are allocated based on the number of
employees, and maintenance costs are allocated based on machine hours.
Predetermined overhead rates for fabrication and assembly are based on direct labor hours.
If the direct method is used to allocate support department costs, the predetermined overhead rate for the Fabrication Department (rounded to two
decimal places) is
A. $28.80.
B. $24.78.
C. $7.28.
D. $5.40.
112. Ely Company has two support departments, Maintenance Department and Personnel Department, and two
producing departments, X and Y. The Maintenance Department costs of $60,000 are allocated on the basis of
standard service hours used. The Personnel Department costs of $9,000 are allocated on the basis of number of
employees. The direct costs of Departments X and Y are $18,000 and $30,000, respectively.

Dept. Dept. X Y
What is the overhead rate for Department Y assuming the direct method is used?
A. $109.00
B. $120.00
C. $250.00
D. $218.00
113. Morton Manufacturing Company has two support departments, Maintenance Department and Personnel
Department, and two producing departments, X and Y. The Maintenance Department costs of $90,000 are
allocated on the basis of standard service hours used. The Personnel Department costs of $13,500 are allocated
on the basis of number of employees. The direct costs of Departments X and Y are $27,000 and $45,000,
respectively.

Dept. Dept. X Y
Standard service hours used 200 150 1,200 600
Direct labor hours 250 250 1,000 500
What is the overhead rate for Department X assuming the direct method is used?
A. $27.00
B. $81.00
C. $46.88
D. $93.75
114. Alliance Manufacturing Company has two support departments, Maintenance Department and Personnel
Department, and two producing departments, X and Y. The Maintenance Department costs of $90,000 are
allocated on the basis of standard service hours used. The Personnel Department costs of $13,500 are allocated
on the basis of number of employees. The direct costs of Departments X and Y are $27,000 and $45,000,
respectively.

Dept. Dept. X Y
Direct labor hours 250 250 1,000 500
What is the overhead rate for Department Y assuming the direct method is used?
A. $90.00
B. $163.50
C. $187.50
D. $81.75
115. Santiago Manufacturing prices its products at full cost plus 40 percent. The company operates two support
departments and two producing departments. Budgeted costs and normal activity levels are as follows:

Departments
A B CD
Overhead costs $20,000 $50,000 $$120,000
9
0
,
0
0
0
Square feet 2,000 2,400 412,000

,
0
0
0

0

0
,
0
0
0

,
0
0
0
If the direct method of allocation is used and the company follows its usual pricing policy, the selling price of the product would be
A. $102.00.
B. $111.00.
C. $115.00.
D. $161.00.
116. Gravity Company has two support departments, Maintenance Department (MD) and Personnel Department
(PD), and two producing departments, P1 and P2. The Maintenance Department costs of $120,000 are allocated
on the basis of standard service hours used. The Personnel Department costs of $18,000 are allocated on the
basis of number of employees. The direct costs of Departments P1 and P2 are $36,000 and $60,000,
respectively.

Dept. Dept. P1 P2
Direct labor hours 200 200 1,000 1,000
What are the total overhead costs associated with P1 after allocating the Maintenance and Personnel Departments using the direct method?
A. $120,000
B. $125,000
C. $36,000
D. $18,000
117. Hotchkiss Company has two support departments, Maintenance Department (MD) and Personnel
are allocated on the basis of standard service hours used. The Personnel Department costs of $9,000 are
allocated on the basis of number of employees. The direct costs of Departments P1 and P2 are $36,000 and
$60,000, respectively.

Dept. Dept. P1 P2
Direct labor hours 200 200 1,000 1,000
What are the total overhead costs associated with P2 after allocating the Maintenance and Personnel Departments using the direct method?
A. $48,000
B. $90,000
C. $94,500
D. $99,000
118. Diane’s Pottery Manufacturing Company has two support departments, Maintenance Department and
Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of
$30,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $4,500 are
allocated on the basis of number of employees. The direct costs of Departments X and Y are $9,000 and

Dept. Dept. X Y
What are the total overhead costs associated with Department X after allocating the Maintenance and Personnel Departments using the direct
method?
A. $31,250
B. $29,000
C. $11,250
D. $9,000
119. Diane’s Pottery Manufacturing Company has two support departments, Maintenance Department and
Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of
$30,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $4,500 are
allocated on the basis of number of employees. The direct costs of Departments X and Y are $9,000 and

Dept. Dept. X Y
What are the total overhead costs associated with Department Y after allocating the Maintenance and Personnel Departments using the direct
method?
A. $15,000
B. $27,250
C. $25,000
D. $17,250
120. Julius Manufacturing prices its products at full cost plus 30 percent. The company operates two support
departments and two producing departments. Budgeted costs and normal activity levels are as follows:

Departments
A B CD
Overhead costs $40,000 $100,000 $$240,000
1
8
0
,
0
0
0
Square feet 1,000 1,200 26,000

,
0
0
0

0

0
,
0
0
0

,
0
0
0
If the direct method of allocation is used and the company follows its usual pricing policy, the selling price of the product would be
A. $260.00.
B. $431.60.
C. $468.00
D. $332.00.
121. Products with substantial value which are produced simultaneously by the same process up to a split-off
point are called:
A. Joint products
B. Minor products
C. By-products
D. Both a and b
122. The cost of crude oil used in producing gasoline products is an example of
A. joint costs.
B. a by-product.
C. joint products.
D. common cost allocation.
123. Joint costs are

A. separable.
B. allocated on the basis of cause and effect relationships.
C. allocated arbitrarily.
124. The split-off point can best be defined as

A. the point at which a secondary product is recovered in the course of manufacturing a primary product.
B. the point at which joint products become separate and identifiable.
C. the point in the production process where no further processing is needed.
D. the point at which you can get more of one product and less of another product.
125. Joint costs are allocated because of

A. financial reporting requirements.
B. tax reporting requirements.
C. IMA requirements.
D. both b and a.
126. A secondary product recovered in the course of manufacturing a primary product during a joint process is
called a:
A. main product
B. joint product
C. by-product
D. both a and c
127. Which of the following is a by-product?

A. lumber
B. fresh fish
C. whole milk
D. sawdust
128. Which of the following would generally be a by-product?
A. canned fish
B. hamburger
C. cow hides
D. pineapples
129. Which of the following methods allocates joint production costs based on the pounds of product
produced?
A. sales-value-at-split-off method
B. physical units method
C. constant gross margin percentage method
D. replacement cost method
130. A joint cost allocation method that would assign the same amount of cost per unit to two joint products that
sell for $10 and $40, respectively, is the
A. sales-value-at-split-off method.
B. direct allocation method.
C. net realizable value method.
D. physical unit method.
131. Which joint cost allocation method is described by the following statement?
Joint cost is prorated to the products on the basis of each product's share of units.
A. physical units method
B. weighted average method
C. sales-value-at-split-off method
D. net realizable value method
132. Laredo Corporation, which manufactures products W, X, Y, and Z through a joint process costing $24,000,
has the following data for 2014:
Total Sales Value

Product Units Produced at Split-Off
W 10,000 $5,000
X 6,000 2,500
Y 16,000 3,000
Z 8,000 4,500
What is the amount of joint costs assigned to product W using the physical units method?
A. $6,000
B. $8,000
C. $16,000
D. $18,000
133. Restaurant Products produces two products, X and Y, in a single process. In 2011, the joint costs of this
process were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced. Separable processing
costs beyond the split-off point were X - $10,000; Y - $20,000. X sells for $10.00 per unit; Y sells for $7.50 per
unit.
What amount of joint costs will be allocated to Product X using the physical units method?
A. $-0-
B. $10,000
C. $25,000
D. $15,000
134. Deli Products produces two products, X and Y, in a single process. In 2011, the joint costs of this process
were $25,000. In addition, 4,000 units of X and 6,000 units of Y were produced and sold. Separable processing
costs beyond the split-off point were: X - $10,000; Y - $20,000. X sells for $10.00 per unit; Y sells for $7.50
per unit.
What is the gross profit of product Y assuming the physical units method is used?
A. $25,000
B. $-0-
C. $10,000
D. $15,000
135. Which joint cost allocation method is described by the following statement?
Each product is assigned a weighting factor which is multiplied by the number of units. Joint cost is prorated to
the products on the basis of each product's share of total weighted units.
A. physical units method
B. weighted average method
C. sales-value-at-split-off method
D. net realizable value method
136. Suppose that a sawmill processes logs into four grades of lumber totaling 500,000 board feet as follows at
a joint cost of $300,000:
Grade Board Feet Final Sales Value

First and second 75,000 $ 56,250
No. 1 common 200,000 180,000
No. 2 common 100,000 105,000
No. 3 common 125,000 127,500
What amount of joint costs will be allocated to first and second using the physical units method?
A. $300,000
B. $45,000
C. $36,000
D. $225,000
137. Impacto Corporation produces four products in a joint process for $650,000. The following information is
available on total sales and production in units:
Products Sales Production

I 1,000 4,000
L 2,000 5,000
E 3,000 7,000
S 4,000 8,000
What amount of joint costs will be allocated to I based on the physical units method?
A. $100,000
B. $650,000
C. $108,355
D. $300,000
138. The sales-value-at-split-off method allocates joint production costs based on each product's share of
A. sales value revenues have not been realized at the split-off point.
B. costs realized at the split-off point.
C. final sales value less further processing costs after the split-off point.
D. units produced at the split-off point.
139. Hibernation Company incurred $500,000 to manufacture the following products in a joint process:
Selling Price
Product Units Produced Weight per Unit per Unit
I 1,250 8 lbs. $5
J 2,500 6 lbs. 10
K 3,750 4 lbs. 10
L 5,000 2 lbs. 5
How much joint cost would be allocated to Product I based on the physical units method?
A. $50,000
B. $450,000
C. $33,333
D. $500,000
140. Cumadin Corporation, which manufactures products W, X, Y, and Z through a joint process costing
$18,000, has the following data for 2014:
Sales Value
W 10,000 $5,000
X 6,000 2,500
Y 16,000 3,000
Z 8,000 4,500
What is the amount of joint costs assigned to Product X using the sales-value-at-split-off method?
A. $18,000
B. $3,000
C. $10,000
D. $2,700
141. Cumadin Corporation, which manufactures Products W, X, Y, and Z through a joint process costing
$18,000, has the following data for 2014:
Sales Value
W 10,000 $5,000
X 6,000 2,500
Y 16,000 3,000
Z 8,000 4,500
What is the amount of joint costs assigned to Product Y using the sales-value-at-split-off method?
A. $3,600
B. $7,200
C. $18,000
D. $1,200
142. Foster Company incurred $200,000 to manufacture the following products in a joint process:
Selling Price
Product Units Produced Weight per Unit per Unit
I 500 8 lbs. $5
J 1,000 6 lbs. 10
K 1,500 4 lbs. 10
L 2,000 2 lbs. 5
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fancy that the explanation of the miracle lies in the hypothesis I have
suggested, the long wall on which the minarets are built having
probably settled, and so, having no communication with the side
walls, being no miracle, but merely bad building. We saw the
miracle, expressed our wonder, thanked “the hereditary functionary,”
and went home sadder and wiser than we came.
Vaccination is now happily appreciated in Persia. On my first
arrival it was unknown, and inoculation was regularly practised.
Another plan, too, was common, and the future native pastor of the
Protestant Armenians lost a child by its practice. He put his own child
in bed with a child having small-pox, that it might take the disease in
a benign form; confluent small-pox of the most virulent type resulted,
and the poor child died, to the great grief of the parent, a most
deserving and honest fellow.
This man and one other are the only teetotalers of Julfa, which
may dispute the palm with any Scotch town for capability of
swallowing liquor on a Sunday.
So common is drunkenness here, that an old cook of mine, an
English-speaking Armenian, used to say to me on Sunday night—
“Dinner finished, sir; if you no orders, I go get drunk with my
priest.” Needless to add, that they both did get drunk, and that it was
at the cook’s expense. Happily, there are some few exceptions
among the Julfa priests, for all India, Persia, and Batavia are
supplied with priests for their Armenian communities from Julfa.
Spirits are supposed to deaden pain, and a Yezdi, a guebre (fire-
worshipper), who had lodged some slugs and iron in his hand, prior
to my removing them, swallowed a quart of strong spirit without my
knowledge. I supposed him to become suddenly delirious, but he
was only suddenly drunk.
Our first care was to make a road for our little dog-cart. The gates
separating the parishes were mostly too narrow to let it pass, and we
finally made one six feet wide at the narrowest, having three bridges
without parapets (which we widened), and one was at a sharp angle,
and a deep ditch the whole way on one side, and a wall on the other.
This was capital for a small two-wheel thing, as long as the horse
didn’t jib or shy, or we didn’t meet any one. Happily, it did not in our
time, but when we got a bigger trap, a park phaeton, with a pair of
horses, the pleasure of our drive was somewhat damped by the
possibility of a capsize at night in the dark! But the cherub that
always keeps a watch over poor Jack must have been on duty, for
we never did have an accident. It was Hobson’s choice, that road or
none.
Crossing the river at Marnūn became our favourite ride, and here
one could canter for miles on a good road, the greater part of which
was shaded by the gardens and orchards on either side. A great
deal of firewood, too, is grown in this neighbourhood, water is
plentiful, and so firewood is a staple crop. Getting out beyond the
gardens, on a small mountain standing by itself on the plain, was the
ruin of an ancient fire-temple. It was merely built of mud bricks, but
here at Ispahan these remain for centuries, and it was only on
climbing up to it that one perceived that it was not all quite modern,
and a small portion built of very large bricks on an ancient wall. A
grand view was got from it, as it commanded the entire plain.
Several large plane-trees are to be seen in the villages, many with
platforms built round them, where the villagers sit and smoke in the
evenings. A sort of semi-sacred character is attached to some of
them, particularly to one which is called the “plane of Mortaza Ali.”
A striking feature at Julfa is the so-called racecourse at Ferhabad.
A couple of walls enclose a straight run of over a mile. These walls,
which are in ruins, and of mud, have at intervals various pavilions,
some of the rooms of which are still almost perfect. At the end is a
large square, having many rooms round it in a still better state. The
road turned at a right angle towards the village of Julfa; but as this is
intersected by wells and watercourses, it is not used as a cantering
ground. The place is supposed to have been the summer palace of
the Afghan conquerors.
Ruins and ancient buildings, when built of burnt bricks, rapidly
disappear in Persia. It is for a very simple reason. It is cheaper to
demolish an old building, and carry off the good seasoned bricks by
donkey-loads, than to make and burn new ones, which often
crumble.
In my own time a large and handsome college near the Char Bagh
of Ispahan has utterly disappeared, the prince having given an order
for its demolition, and that the material be used in making the new
one he has now completed. The very foundations were grubbed up.
In Ispahan itself every third house is a ruin, and in Julfa the walls of
gardens and orchards often contain the bare inner walls of ancient
houses, which retain the brightness of their painting and gilding in
the dry and pure air.
Donkeys, as beasts of burden, are much employed in a country
where there are no carts or wheeled vehicles; save in the capital, the
donkeys do all the ordinary work of vehicles. Earth, manure,
produce, firewood, charcoal, grain, are all carried on these beasts or
on mules. Each animal has his pack-saddle, in which he lives and
sleeps. It is only removed when the donkey gets a rare and very
occasional curry-combing from a very primitive sort of instrument,
having jangling rings, which produce a music supposed to be
soothing to a donkey’s soul. Every villager has his donkey; if more
than one he is well-to-do. The ordinary wage of a man is one keran,
a man and donkey one keran and a half, and each additional donkey
half a keran. They work from sunrise to sunset, with an hour’s
interval for feeding.
Julfa is a particularly healthy place, for the cesspools are
constantly kept clean by the market-gardeners, who pay for the
privilege of removing the manure. By mixing the contents of the
cesspools with ashes, a dry and portable manure is produced of the
highest efficacy, and odourless. It is removed on donkeys, and
stored in the fields until required.
In the very depth of the winter, when snow and ice had rendered
the ride to the town highly dangerous for horses, I was summoned in
haste to see my old patient the Zil-es-Sultan, now the most important
man in the kingdom next to the king. I went, though risking my
horse’s knees, and was rather disgusted to find that I was sent for to
see if he was ill or not, as he was not sure. I found him in a hot room,
temperature eighty (by the thermometer), wrapped in furs, being
shampooed by three attendants, while a fourth was reading poetry to
him. He was, I told him, in a fair way to get ill, and that air and
exercise were all he needed. He took my advice, and returned to his
usual very active life.
He showed me an armoury of some eight hundred rifles, with a
proportionate amount of fowling-pieces and pistols. I expressed the
desired amount of admiration. I suppose the time will come when his
Royal Highness will make an effort for the throne, probably on the
present Shah’s death. It will be a lucky day for Persia if he succeeds,
as he is clever, tolerant, and a good governor. His personal
popularity is very great, and his luck as a governor proverbial. He
has a dislike to deeds of blood, but is a severe governor, like his
uncle, the late Hissam-u-Sultaneh, whose virtues he emulates.
The Valliāt, or heir-apparent, on the contrary, is physically weak,
and mentally imbecile, being a bigot in the hands of a few holy men,
and as impracticable as he is obstinate. No doubt if he ever does
reign a black time will set in for the country, for religious persecution
on a gigantic scale will commence, and the future of Iran be very
sad.
The Zil-es-Sultan had just got two bull-terriers from England. He
was convinced of their ferocity; and certainly the dog, very short-
faced, and almost a bull-dog, was of terrific appearance. His Royal
Highness caused them to be let into the courtyard, cautioning me to
be very still, as not knowing me they might attack me, and providing
me with a lump of sugar to appease them. Of course nothing of the
sort took place, but the dogs ran about and smelt the various
grandees, to their great disgust. The prince made great pets of them,
feeding them with sugar. I was surprised to find that though these
dogs had not seen an Englishman for months, yet on my speaking to
them in English they followed me about, fawning on me, and
neglecting the prince, and the dog-man who was their valet.
Since this time the prince has procured two huge half-bred Dutch
mastiffs, in which he greatly rejoices, and these animals, though not
fierce, are certainly very powerful dogs. Strange that the love of
animals in a man like the Zil-es-Sultan should so overcome the
Mussulman dislike of the unclean beast. The dogs were in the habit
of licking the prince’s hand.
This particular winter was an unusually severe one. There was
much snow, and it was impossible to get out for rides for a fortnight;
and two store-rooms of my huge house fell in, from the heavy mud
roofs being soaked with water, and breaking their supports by the
enormous increase of weight.
On one occasion in the early spring we had ridden out to the
garden palace of Haft Dust, and were preparing to take tea, when
with great noise the Zil-es-Sultan rode into the place with some fifty
horsemen. No sooner did he see and recognise my servants than he
asked if I was alone. On hearing that my wife (“my house,” as my
man put it) was with me, he rode out, taking all his followers with
him, and sending me a message to “go on with my tea, that he
trusted I should enjoy my visit, that the place was mine as long as I
pleased,” etc.
Europeans avoid the Persians when with ladies, as very ridiculous
scenes are at times the result. One gentleman, whose wife was not
in her first youth, on meeting the prince when riding with her, instead
of avoiding him, stopped to speak.
It was one of his rude days, for he calmly asked, in defiance of the
rules of Persian politeness, which demand the ignoring of the
existence of any female:
“Is that your wife?”
“Yes, my wife.”
“Well, I wouldn’t have a wife so old and ugly as that. Get a young
one.”
The situation for both lady and gentleman was embarrassing.
CHAPTER XXXIV.
JOURNEY TO AND FROM TEHERAN.
Proceed to Teheran—Takhtrowan—Duties—Gulhaek—Lawn-tennis—Guebre
gardener—A good road—The Shah—Custom of the Kūrūk—M. Gersteiger—
Cossack regiments—Austrian officers—New coinage—Count Monteforte—
New police—Boulevard des Ambassadeurs—English Embassy—Tile gates—
Summer palaces—Bazaars—Russian goods—Demarvend—Drive to Ispahan
—Difficulties of the journey—Accidents—Danger of sunstroke—Turkeys—
Keeping peacocks—Armenian tribute of poultry—Burmese and Japanese
embassies—Entertainment and fireworks—Cruel treatment of Jews—Oil
paintings—Bahram and his queen—Practice makes perfect—Pharaoh and the
Red Sea—Pharaoh and the magicians.
After an eighteen months’ stay in Julfa (Ispahan) I received orders

to proceed to Teheran “to act” (for my chief).
We started, my wife travelling in a “takhtrowan” (moving bed). This
consists of a box with doors and windows, six feet long, three feet
wide, and four feet high. A thick mattress is placed in it, and plenty of
pillows. Where the road is fairly level, as from Ispahan to Teheran, it
is not a bad way of travelling for a lady. The great cause of
satisfaction to her was that she had her baby with her. Water was
kept out of the machine by a waterproof sheet being tacked to the
top, and a thick carpet was lashed over the roof when travelling in
strong sun. At each end of the box are shafts, and between each
pair a mule. The movement is at first rather sickening, but this is
soon got over, and the traveller sleeps the greater portion of the
stage.
Although we travelled as lightly as possible, we were forced to
take twenty-four mules, and were heartily glad when our journey,
which was twelve long stages, and without incident of any kind, was
over. I hired a little house at Gulhaek, the village where are situated
the summer quarters of the English Embassy, and where lives the
chief of my Department, in the summer.
In addition to my own work I was in charge of the staff of the Indo-
European Telegraph Company’s line who lived in Teheran. Our own
signalling staff too lived in the town. As however we had an
exceptionally healthy summer, the duties were very light.
I was also placed in medical charge of the Russian Embassy by
the Russian Ambassador, M. Zenoview, for the greater part of my six
months’ stay, their own physician having gone to Russia for a time
on private business.
Gulhaek is one of the villages at the foot of the mountains
bounding the Teheran valley, and by prescriptive right the English
Legation go to Gulhaek, the Russians to the next village, Zergendeh,
and the French to another a couple of miles higher, called Tejreesh.
These places are delightfully cool, and if the signallers of the
Department and of the Company could be moved to them, it would
be a great boon to the men, for it is terribly hot and unhealthy in the
town, and the expense would not be great: in fact it ought to be
done.
Lawn-tennis, when we arrived, was in high vogue, and was played
every afternoon on a level ground (a lawn in Persia is nearly
impossible) mudded over with what is termed “kah gil,” a mixture of
“kah” (cut straw) and “gil” (mud). This forms a sort of sheet of smooth
and springy ground, which gives a good foothold, and dries rapidly.
The tennis was justly popular, and was the most pleasant means of
obtaining exercise, and consequently health.
Our own comfort was increased by the arrival of an English nurse,
whom we had engaged to come out for a certain three years.
I was enabled to buy a small park-phaeton and a pair of well-
broken horses from a German, the master of the Shah’s mint, who
was leaving because he declined to debase the coinage, which was
contrary to the terms of his agreement.
In the garden next to ours lived a Guebre. A few of these men
have been under the protection of the English Embassy time out of
mind. He kept us supplied with strawberries at tenpence a plateful;
and as we had not tasted them since leaving England, they were a
great luxury, particularly in a warm climate.
The greater part of the road from Gulhaek to Teheran, being the
way to the Shah’s favourite summer residences, is planted on both
sides with trees and shrubs. These give a grateful shade; and as the
road is in good order, it is pleasant driving; but, when thronged, the
dust rises and covers everything, so that it is like a very dusty return
from the Derby, but with no excitement, and hotter. Still, a good road
in nearly roadless Persia was a thing to be taken advantage of.
Several times when out driving we met the Shah, and invariably
drew on one side to allow him to pass. His Majesty was always very
polite, and returned our salutes. On our passing the first time he sent
a man to inquire who we were. The Prime minister, too, was
particular in behaving in a civilised manner, but the ragamuffin
attendants on the royal ladies always used to shout “Begone,” “Be
off,” and their postilions would always drive as close as possible, and
pass one as if they wished a collision, or to take a wheel off.
The custom of the kūrūk is dying out. It used to be death for any
man to be in the neighbourhood of the royal wives when on their
numerous outings. The people always fled, or stood with faces to the
wall; and Europeans, when they saw the eunuchs’ procession
approaching, and heard the cry of “Gitchen” (Turkish “Begone”), to
avoid unpleasantness and possible rows, used to turn down the first
street. A very eccentric Austrian, the Baron Gersteiger Khan (the
latter title being, of course, a Persian dignity; for many years
instructor to the Persian army, and at last general; principal officer of
engineers, and constructor of roads, in which latter work he has
really left some striking marks of his success), on meeting the ladies
when he was on foot, turned his face to the wall like a native, and as
each carriage passed, deliberately saluted from the back of his head.
This delighted the ladies, and they informed the Shah. The Shah
sent for Gersteiger, and made him repeat his salutes, and after
laughing a good deal, gave him a handsome present.
The king generally travelled in a carriage very like a sheriff’s, with
eight pairs of horses harnessed to it, with postilions. They went at a
fair pace, were always preceded by the royal runners (“shatirs”), clad
in their ancient Persian dress of red, with the curious turreted hat,
like a fool’s cap and bells, and each bearing a gold baton. These
men were all good runners, and some six or eight ran in front, while
one or two always kept at his Majesty’s side.
When we were in Teheran a number of Russian officers were
engaged in forming some so-called Cossack regiments. They
engaged horsemen, whom they regularly paid, and seemed to be
teaching these men their drill successfully. These so-called
Cossacks were the Shah’s favourite toy of the moment, and he was
never tired of reviewing them. They were well but plainly dressed,
well horsed and well armed, and the Russian officers were very
popular both with Shah and soldiers.
A large contingent of Austrian officers had also arrived to instruct
the infantry and artillery; but though these gentlemen were well paid,
they did not find Persia the El Dorado they expected. Some of them
resigned while I was there. They also fought among themselves; and
all have now, I fancy, left the country. The capital was ever rather a
rowdy place; murders and burglaries were common; and, as in other
towns of Persia, the “darogas,” or police-masters, and their
dependants were so mercenary, that the townspeople preferred
being robbed to complaining to them, on the principle of two evils to
choose the less.
The manufacture of false money had become a national evil, and
forgeries of the royal seals were frequent. The first evil was sought to
be got over by calling in the old rough coinage, which was hammer-
struck, and substituting a handsome series of medals in gold and
silver, having milled edges. These were introduced with great
success, and the new coinage was handsome and popular. But it
was soon counterfeited, and when the nuisance had attained its
height the Count Monteforte arrived with special credentials from the
Emperor of Austria, and was installed as head of police. This
gentleman seemed to be exactly the right man in the right place. He
got on with the natives, in a few weeks established a character for
honesty and shrewdness, detected many offenders, recovered much
stolen property, and established a regiment of policemen, well
drilled, well dressed, honest, polite, and who refused bribes. As
bribes are to the Persian what beef is to the Englishman, these
phenomena have probably ere this been either shelved or corrupted;
but when we were in Teheran in 1880, they were in full swing, and
the wonder and admiration of foreigners and natives.
Just one street in Teheran is very much Europeanised; it is fairly
paved, and lighted by lamp-posts containing candles. It is called the
Boulevard des Ambassadeurs, and as it is a wide street, the view
from the bottom is somewhat striking, ending as it does in the green
hills and black mountains covered on their tops with snow.
At the top, approached by an ornamental gate of great size, is the
palace of the English Ambassador. This has been recently erected at
enormous cost, partly from designs by the late Major Pierson, R.E. It
is surrounded by trees, and the edifice meets the requirements of the
country, and is very original in appearance. It stands in a magnificent
garden of great size, in which are placed the houses of the
secretaries, built like English villas of the better class. The interior of
the Embassy is furnished with great splendour with English furniture,
and our ambassador to the Court of Persia is lodged as he should
be, en prince.
The rest of the town is wholly Oriental. Dead walls of mud and
brick are seen in every direction. The streets are mud in winter and
dust in summer.
The principal feature in Teheran is the numerous tiled gates.
These structures, covered with floridly-coloured tiles in elaborate
patterns, mostly geometrical, having centre-pieces of
representations of scenes from the mythology of Persia, were
certainly novel and curious. As a rule, the modern tile-work is in
striking contrast to the ancient, which is much chaster, and in better
taste.
Of the many palaces none were worth description, of those that I
visited, which were all mere summer retreats. They were gaudy,
much painted and gilt, and the white plaster-work, decorated with
mirrors, was the only kind of ornamentation having the slightest
pretence to be artistic. The dry climate, however, enables this
effective style of decoration to be used for exteriors, and it retains its
pristine whiteness in the clear air for many years. Many large
buildings seen from a distance in Teheran have a great appearance
of magnificence, and it does not strike the beholder at first that they
are merely plaster-of-Paris over mud bricks. To them the term
“whitened sepulchre” is particularly appropriate; but the insecurity of
property must be considered, and a man would be unwise to build an
expensive edifice which would expose him to jealousy.
The bazaars are good, and sufficiently curious; of course much
inferior in size and richness to those of Stamboul (Constantinople).
Most of the goods exposed, not of native manufacture, are Russian.
[36]
The Russian goods are liked in the Eastern market. They are very
cheap, and very strong; in fact, are suited to the country; they are
also, alas! very ugly. The tremendous land journey from Trebizonde,
or that from the Persian Gulf, or the alternative from Baghdad viâ
Kermanshah, closes the Persian market at Teheran to the English.
Fortunes, however, are made there, an importer of French goods
(which are particularly appreciated by the Persians) having retired
with a large one. About four hundred per cent. is generally charged,
which covers the heavy freight and the duty, and leaves about cent.
per cent. profit.
We found a great deal of gaiety at Teheran. A weekly dinner at the
Embassy, generally a daily drive, and the society of many Europeans
of different nationalities, was of course a great break in the
monotony of our life in Persia. But our pleasures after four months
were interrupted by the serious illness of my wife. Our second little
boy was born, and we were lucky in having a reliable nurse.
The view of Teheran is made very unique by the great semi-extinct
volcano, Demarvend, in the distance, which gives it great grandeur,
towering, as it does, over the valley, with its top covered in eternal
snows, and taking innumerable lovely tints at the rising and setting of
the sun.
We came to Teheran by the longer way of Natanz, thus avoiding
the great Kohrūd pass, a particularly unpleasant stage when there is
much snow; and as my wife was really an invalid, we determined to
return to Ispahan driving—a thing no one has done before, and I
fancy no one will do again. I had a new set of wheels made specially
strong and heavy, and with very strong tyres. I succeeded in buying
a second pair of half-broken horses, in case my own pair came to
grief, and we left in the autumn for Ispahan, the nurse and babies
occupying the takhtrowan, while my wife and I went in the trap.
We drove through the town with some trouble, and as soon as we
were clear of the fortifications the road became broad and level, and
we reached Hadjiabad, a garden, where we stopped the night.
The next day we crossed a rocky mountain, having to drag the
phaeton by hand some miles, and then, locking the wheels with
ropes, we got it down a very steep place. The rest was plain sailing;
the roads were generally fairly good. My wife had to get out only
some four times on a fifteen days’ journey, and it was only on getting
into or out of villages, where there were at times deep ditches, but
plenty of willing helpers, that we had any difficulty.
On our last stage but three we mistook the road, and came forty-
eight miles instead of twenty-four. We, however, only used our
second pair once, as they were very unsafe; and our horses, strange
to say, did the whole journey well, and arrived in fair condition.
At the last stage but two a ridiculous accident occurred. We had
frequently snapped the heads of bolts, and even the bolts
themselves, by going over very rough places, the jolt breaking the
heads off, as they were steel. These we generally detected and
replaced by others, which we had caused to be made in Teheran.
But Mūrchicah is a big village, with numerous twists and turns
between dead walls ere one gets to the post-house. We had come a
long stage, were very tired, and very anxious to get in, and, instead
of going over a deep dry ditch which we had to pass, and which was
very narrow, in a careful way, I was foolish enough to try to pass it
quickly. The result was a snap of all three bolts that fixed the trap to
what is, I fancy, technically termed the fore-carriage. The thing hung
together till we had got the hind wheels out of the ditch, and then the
horses, pole, and two front wheels went on, the carriage itself
remaining behind and falling forward; and, had not the apron been
up, we should have been shot out. Fortunately the reins were long,
and the horses easily pulled up. They were probably unaware of the
accident. Though we were in the village there was no one about. The
servants were either in front with the bedding, or behind with the
loads, yet in five minutes the bolts were replaced by fresh ones, and
we were proceeding on our way.
At this stage our little boy was taken very ill, and we both felt that
another march in the sun in the “kajawehs,” with his man-nurse,
might be fatal to him. So next morning we started very early, and
taking him in the trap, which had a hood and an opening with a cut
leather curtain behind, that made it very cool: we hurried over the
twenty-two miles, and did it in two hours and twenty minutes through
deep sand.
The next day’s stage was a very bad one, as, though short, we
had to pass through the town, and had to take the horses out twice,
and I dreaded our own very narrow and dangerous road to the
house. However, we got in without accident, by starting at dawn,
before ten; and the child, by rest and nursing, was soon himself
again.
The sun in Persia is a very insidious enemy. Many cases of sun-
apoplexy each year are seen, and I had a fixed rule that, except for
evening rides, my wife and I always wore an Elwood’s sun-helmet,
and this is the only real way to preserve oneself. All other things but
the topi are valueless, unless one uses the hideous pith hat, or
resorts to the turban. Of course in India these precautions are still
more necessary. I don’t know if these sun hats are made for children.
They are very necessary if children are allowed to go at all in the
sun, and they will go, and natives will let them. But really good-
looking riding-hats are turned out for ladies. My wife had a solar
riding-hat à la Gainsborough, that was almost becoming; so that
ladies at least have no excuse. I was constantly warning those under
my care of the danger of little caps, billycocks, etc., but in many
cases I was looked on as a “Molly,” though I felt it my duty to press
my warnings. Of another thing I am convinced, that the powerful
effect of the sun is much lost sight of in Europe, and I look on a
bright helmet of metal, unless air-chambered, as an invention of the
devil, and pity the poor Life Guards, etc.; the horsehair, however,
happily saves them a little.
On our journey down, at a place called Sinsin, we saw a big
turkey, and succeeded in buying a pair for fifty kerans, supposing
them to be the only pair. We found afterwards that the head-man of
the neighbouring village had a hundred birds, and the price
afterwards fell to eight shillings a bird.
We were very successful in the rearing of the young turkeys, the
hens sitting on their own eggs, and proving good mothers. So many
poults did we have, that, when we left Ispahan eighteen months
afterwards, we ate two a week for nearly six months. The turkeys
were of two varieties, the ordinary black ones, as seen in Europe,
and of large size, and a smaller bird, of lighter colour, and more
delicate, some of which latter were almost pure white.
Peacocks are much valued in Persia, and supposed only to be
kept by royalty: the English Minister has several fine birds, and the
privilege of keeping them is jealously guarded.
We brought a quantity of tame ducks down from Teheran; these
increased and multiplied amazingly, and bred with some wild ducks
of the common kind. We brought also three geese. Geese, ducks,
and turkeys were common long ago in Julfa when Ispahan was the
capital, but the Armenians, finding that they had to pay a yearly
tribute of fat birds, allowed them to die out, and so escaped the
exaction. However, when we left Julfa, all the Europeans had turkeys
and ducks, and there were plenty of geese at Soh, three stages off:
so, doubtless, by now (two years) they are plentiful.
We were glad to get back to our own home, for though Teheran
gave us most of the joys of civilisation, still we felt that our home was
in our big house at Julfa. And how we did enjoy not having to start as
usual the next morning!
Our stay in Ispahan was not chequered by any very exciting
events, save those personal to ourselves.
During our sojourn, two ambassadors passed through it. One, the
Burmese, an old and cheery man with huge ears, accompanied by a
staff of attachés, one of whom spoke English well, and had been
educated at King’s College. He was supposed to be carrying rubies
for disposal through Europe. He had a ring with him as a present
from the King of Burmah to the Shah. Hoop, collet, and all, were cut
out of one solid and perfect ruby of the first water—a truly barbarous
present. These Burmese all wore the national apology for
unmentionables—a handsome sheet of silk, termed a “langouti.” This
is wrapped around the waist, and depends nearly to the feet; their
heads were bound with fillets of muslin. The Zil-es-Sultan gave an
entertainment in their honour, to which we were all invited. A fair
dinner was followed by fireworks; these in Persia are always fairly
good, the only thing being that Persians do not understand coloured
fireworks, otherwise their displays are very good. One very good
feature is, that the public are always freely admitted. All the walls are
marked out with clay oil-lamps, and festoons of the same hang from
wires affixed to high poles: these are lighted after sunset, as soon as
it is dark. Music of a promiscuous character is played, all the
musicians and singers joining in to different airs. The military bands
strike up, each man playing his loudest at his own sweet will. A gun
is fired, and the huge golden rains from earthen cones light up the
whole scene, disclosing the shouting throng of good-tempered
Persians of the lower orders; all people of condition having been
provided with rooms and seats. All the roofs are thronged with
crowds of veiled women, flights of rockets are continually let off, and
the set-pieces soon commence. These are supplied in great
profusion, and, save for the want of colour, they are quite equal to
any effort of European pyrotechny.
A row of wretched Jews are now pushed into the tank—a
proceeding which always accompanies any official display of
fireworks. I know not why, unless it is to let the poor Jews feel, even
in times of rejoicing, the wretchedness of their position. Dancing
boys dressed as girls twirl and tumble, buffoons dance and pose
grotesquely, the noise of music and singing is at its loudest.
“Kūrbāghah” (frogs), a kind of water firework, are thrown in the tanks
in every direction, and, as the set-pieces are fading, the whole
concludes with a tremendous bouquet of fire as in Europe.
The Japanese ambassador, or rather commissioner, was received
with less ceremony, as he was proceeding incog. on his way to
Europe, having a mission to introduce Japanese goods to the notice
of Europeans generally. His attachés, too, spoke French and
English, and were funny little fellows; but, as the Persians put it, “too
ugly to have any value, even as slaves!”
We patronised art in Ispahan by having oil-paintings, executed by
native artists, of incidents in Persian life; some of these were
sufficiently curious. Among the subjects illustrated were “The Sticks,”
a very tragic picture indeed, where the expressions of pain, terror,
supplication, and ferocity were well shown.
Another amusing series were five pictures representing the history
of Bahram and his queen. The monarch is shown as pinning, with a
master-shot from his bow, the foot of an antelope to its side while it
was scratching itself.
“What do you think of that?” says the exulting king.
“Oh, practice makes perfect,” coolly remarked the lady.
They naturally separate; for it is a dangerous thing for a wife to
disparage her husband’s shooting. And here a curious parody of an
ancient classical legend occurs. Bahram hears of a lady of great
strength, who is in the habit of carrying a full-sized bull to the top of a
tower!
He goes to see the prodigy, and sees a lovely woman perform the
feat (scene depicted); his astonishment is manifested by his placing
his finger to his mouth—the typical gesture for this sensation in
Eastern art.
“Oh, that is nothing,” says the triumphant queen, “practice makes
perfect.” She then explains that she had commenced her feat when
the bull was a little calf. The king smiled, and took her back.
Many of the subjects illustrated were the histories from the Koran.
Thus the passage of the Egyptians, and their subsequent fate in the
Red Sea, is shown; Pharaoh and his host drowning, while a green-
winged angel exhibits to the sinking monarch a divine scroll, on
which his sentence is written. The expiring Egyptians are good, and
the look of horror on the face of Pharaoh is well done. But a small
steamer is seen in the distance! Another picture was “The staff of
Aaron changed to a serpent, having devoured the serpents of the
magicians of Egypt.” Here the winged dragon (or serpent) of Aaron is
so tremendous, that Wagner would have been glad of him at
Bayreuth: he is vomiting fire, and is a bogey of the first water.
Pharaoh, his eyes starting from his head, is depicted in horror, while
Moses has the satisfied expression of a conjurer after a successful
tour de force. Another represents Iskender (Alexander the Great),
who, having conquered the world, proceeds to the regions of eternal
night, as according to Persian legend he did in fact. The conqueror
and his warriors are well and carefully drawn, many of the figures
carrying torches and cressets; but the eternal night is shown by
painting the whole of the figures, trees, etc., on a black ground, and
a curious effect is thus produced.
Solomon in all his glory (see Frontispiece) is a favourite subject.
Solomon, who had the power of speaking the languages of animals
and all created things, and who could command the spirits of the
earth and air, is seen seated on his throne. Above his head is the
fabulous bird, the simūrgh; to his right, on a perch, is his favourite
the hoopöe, below this are two tiny efreet. The Queen of Sheba is
seated in a chair of state, behind her are her female servants and
slaves, and two gigantic jinns (genii). To the king’s left, are his Vizier
Asaph (the author of the Psalms of Asaph, or possibly the person to
whom they were dedicated), and Rūstam, the Persian Hercules,
armed with his bull-headed mace. Behind them are four jinns of
terrible aspect. The air is full of birds; and the foreground of beasts,
reptiles, and insects. The tiny figures with crowns are angels,
servants of Solomon; the turbaned figures are courtiers and
servants.
CHAPTER XXXV.
WE RETURN VIÂ THE CASPIAN.
New Year’s presents—Shiraz custom—Our cook’s weaknesses—He takes the

pledge—And becomes an opium-eater—Decide to go home—Dispose of kit—
Start for Europe—Our own arrangements—Diary of our journey home—
Arrival.
A severe winter, diversified with occasional fine weather, when the

days were even hot in the sun, brought the No Rūz (or Persian New
Year) and the commencement of spring. Our servants brought their
plates of sweetmeats to mark the day, and duly received a month’s
pay, or clothes to that amount. The woman-servant Bēbē brought her
mistress an earthen water-bottle, around the ledge of which was
sown barley, the grains being held on by a bandage, and the porous
jar keeping them constantly wet; the result was a number of rings of
bright grass, the whole forming a very pretty and original, if useless,
present. It is a common custom to do this in Shiraz at the New Year,
and even the poorest has his water-pot covered with brilliant green.
Our cook is giving some trouble just now; for though a capital chef,
and though he has been with me fourteen years—having begun at
eight shillings a month, and arrived for the last five years at forty and
the spending of all the money—yet he has his vices. When he was
first with me as a youth of nineteen, he was perpetually getting
married, and as frequently getting divorced; then he took to getting
continually arrested for debt; next drink became his foible, and this
endured for about four years; dismissal, the bastinado (by the
authorities), fining, were all tried without avail: at length, in despair, I
sent him to the head of religion in Ispahan, with a note to the Sheikh,
in which I apologised for troubling him, but stated that the man was a
very old servant in whom I had a great interest, and would he make
him take the pledge? The cook, who took the note himself, had no
idea of the contents. He told me that the Sheikh read it and told him
to wait; when the large assembly that always throngs the Sheikh’s
house had disappeared, the old gentleman produced a Koran, and
proposed that the cook should take the pledge. He dared not refuse.
After swearing to take no wine or spirits, a formal document was
drawn up, to which the cook attached his seal. The Sheikh wrote me
a very polite note, and assured me that the man would keep the
pledge.
It appeared that he exhibited a tremendous “taziana,” or cat-o’-
nine-tails, to my man, as what pledge-breakers are punished with.
The cook now was for weeks as sober as a judge, but he was
becoming a fool; the dinners were spoiled, or incongruous, or both:
in fact, as he must do something, he had become an opium-eater.
Opium, though habitually used by the aged of both sexes, is seldom
taken to excess, save by “lutis,” or confirmed debauchees.
At last, finding it impossible to cure this determined offender, I
gave my reluctant consent to his proceeding to Kermanshah, his
native place, where he wished to stay at least a year. I never saw
him again.
I don’t know if the last straw was the loss of our cook, or if we had
come to the conclusion that definitely Persia was not the place for a
lady, but we decided to go home on two years’ leave, to which I was
now entitled; and as we felt that it was very probable we should
never return, we determined to sell off our entire kit. We accordingly
drew out a catalogue of our worldly goods in Persia, and distributed
it among the telegraph officials. By a couple of months everything
was disposed of but the rubbish. This was sold by auction, and
produced a keen competition among the Armenians.
I was enabled to get rid of our phaeton without loss, for a Persian
of wealth, the “Mūllavi,” gave me within forty pounds of what I gave
for it and the horses; and the severe work we had had out of trap
and horses for two years was well worth the difference.
Captain W⸺, who was expecting his sisters out, viâ Russia, took
all our road kit and saddlery, and my wife’s mare and the
“takhtrowan,” all to be given over at Resht, on the Caspian, so we
were quite free to start.
OUR JOURNEY HOME.

March 28th, 1881.—Ispahan Julfa.—At last I hear that a muleteer
is found who will go direct to Resht, by way of Kūm, Hajeeb, and
Kasvin, avoiding the capital. I go to the house of a Baghdad
merchant in Julfa, and find the muleteer, who is being regaled with
pipes; he is the head-man of the neighbouring village of Se Deh
(three villages), and the proprietor of a hundred mules. I am told that
his son-in-law will go with the mules, and am introduced to a young
fellow some six feet high and thickly built, who is a Tabrizi, and
speaks good Turkish and bad Persian. He is wearing the large heavy
sheepskin cap of Tabriz, with the wool long. The merchant informs
me that he thinks the hire should be sixty kerans per mule. This is
said in English, and he then turns to the elder man and says:
“You will, of course, give this sahib mules at forty kerans per
mule?”
The old man replies: “I have, after much persuasion, got Jaffer
Kūli, my son-in-law, to agree to eighty.”
The young man, with many vows, raises his hands to heaven and
demands eighty-five. “Why do you throw words into air, Jaffer Kūli?
as I am this merchant’s friend let us say eighty, and the sahib will
have had mules for nothing. Of course we get a present?”
I here get up, saying, “These fellows are quite mad; let us talk to
men.”
They in turn rise and say, “Our last word is seventy-five.”
So we talk for an hour. Then, and not till then, the ceremony of
agreement is gone through, and the articles strictly drawn up by the
merchant, after much chaffering. At last he begins to read in a sing-
song drawl, for our mutual edification, the following:

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Cornerstones of Cost Management 2nd

Edition Hansen Test Bank

2. Allocation increases total costs.

3. Producing departments create products and services to make and sell.

4. Producing departments provide essential services for support departments.

8. Dual rates combine the fixed and variable costs.

10. Budgeted rates are allocated based on original capacity.

15. Allocation is not necessary when using JIT manufacturing.

26. __________ are mutually beneficial costs to joint product costing.

33. Departmental __________ is applied to products passing through the department.

36. Support department cost to the producing departments is(are) called:

38. Support departments

39. Examples of support departments include all of the following EXCEPT

40. Which of the following departments is NOT a support department?

42. Examples of producing departments include all of the following EXCEPT

47. The major objective(s) of allocations are

54. Rules of financial reporting (GAAP) require

58. Figure 7-1

Sportswear Lingerie Appliances

61. Figure 7-2

Variable costs $34 per trip

The budgeted usage is given below:

The actual usage is given below:

West Sales Territory 100 trips

Variable costs $34 per trip

The budgeted usage is given below:

The actual usage is given below:

West Sales Territory 100 trips

Variable costs $34 per trip

The budgeted usage is given below:

The actual usage is given below:

West Sales Territory 100 trips

Variable costs $34 per trip

The budgeted usage is given below:

The actual usage is given below:

West Sales Territory 100 trips

67. Figure 7-3

68. Figure 7-3

70. FIGURE 7-4

Normal and actual activity (copies made) are as follows:

Copy Center 1 Copy Center 2

71. FIGURE 7-4

Normal and actual activity (copies made) are as follows:

Copy Center 1 Copy Center 2

72. FIGURE 7-4

Normal and actual activity (copies made) are as follows:

Copy Center 1 Copy Center 2

Capacity Provided Capacity Used

Normal and actual activity (brochures made) are as follows:

Brochure Center 1 Brochure Center 2

Refer to Figure 7-5.For purposes of performance evaluation, fixed costs allocated to

75. FIGURE 7-5

Normal and actual activity (brochures made) are as follows:

Brochure Center 1 Brochure Center 2

Normal and actual activity (brochures made) are as follows:

Brochure Center 1 Brochure Center 2

Capacity Provided Capacity Used

Capacity Provided Capacity Used

Capacity Provided Capacity Used

83. Which of the following methods allocates support department costs?

Direct labor hours 2,000 28,000 1

Machine hours - - 12,000 8

Direct labor hours 2,000 28,000 1