Carson Corporation Carson Corporation Has Three Production Departments A,B,and C

question 16

Multiple Choice

Carson Corporation Carson Corporation has three production departments A,B,and C Carson Corporation also has two service departments,Administration and Personnel.Administration costs are allocated based on value of assets employed,and Personnel costs are allocated based on number of employees.Assume that Administration provides more service to the other departments than does the Personnel Department. Refer to Carson Corporation.Assume that Administration costs have been allocated and the balance in Personnel is $860,000.What amount is allocated to C (round to the nearest dollar) ?

• A)$213,964
• B)$430,000
• C)$286,667
• D)$143,333

---

Definitions:

Functional Currency

The currency of the primary economic environment in which an entity operates, typically used in its financial reporting.

Foreign Currency Transaction

A transaction that is denominated or requires settlement in a foreign currency.

Denominated

Indicates the unit of currency in which a financial transaction or instrument is specified.

FOB

Free On Board (FOB) is an international commerce term used to indicate whether the seller or buyer is responsible for goods damaged or destroyed during shipping, specifying the point at which the risk of loss shifts.