Veneer Company Has Two Service Departments and Two Producing Departments

question 80

Multiple Choice

Veneer Company has two service departments and two producing departments. The number of employees in each department is:
$\begin{array}{lr}\text { Personnel } & 10 \\\text { Cafeteria } & 25 \\\text { Producing Department A } & 265 \\\text { Producing Department B } & \underline{ 250} \\&\underline{550}\end{array}$

The department costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $37,125 during a given period, the amount of cost allocated (rounded to two decimal places) to Department B under the direct method would be:

• A) $0.
• B) $17,187.50.
• C) $16,875.00.
• D) $18,021.84.

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Definitions:

Computers

Electronic devices designed to manipulate data according to a set of instructions, capable of performing a wide range of tasks.

Labor Productivity

The measure of economic output per unit of labor input, reflecting the efficiency of labor in producing goods and services.

Developed Economies

Countries with highly industrialized economic systems, significant technological infrastructure, and high levels of Gross Domestic Product per capita.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world’s nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.