The Following Information Relates to Osceola Corporation for the Past

question 74

Multiple Choice

The following information relates to Osceola Corporation for the past accounting period.
$$\begin{array} { l r } & \text { Direct costs } \\\text { Service Department A } & \$ 80,000 \\\text { Service Department B } & 60,000 \\\text { Producing Department C } & 15,006 \\\text { Producing Department D } & 20,000\end{array}$$
$$\begin{array}{l}\text { Propartion of sernceby } A \text { to: }\\\mathrm { B } & 10 \% \\\mathrm { C } & 60 \% \\\mathrm { D } & 30 \%\end{array}$$
$$\begin{array} { l l } \text { Proportion of service by B to: } \\\text { A } & 30 \% \\\text { C } & 20 \% \\\text { D } & 50 \%\end{array}$$
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Using the reciprocal (simultaneous solution) method, Department A's cost allocated to Department C (rounded to the nearest whole dollar) is:

• A) $48,000.
• B) $58,800.
• C) $60,619.
• D) $98,000.

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Definitions:

Hz

Hertz, a unit of frequency equivalent to one cycle per second.

RC Parallel Circuit

A circuit consisting of a resistor (R) and a capacitor (C) connected in parallel with each other across a voltage source.

Resistor Voltage

The voltage across a resistor, determined by the current flowing through it and its resistance value.

Capacitor Voltage

The electrical potential difference across the terminals of a capacitor, dependent on the charge stored and the capacitor's capacitance.