Westminster Manufacturing Company Has Two Support Activities and Two Line

question 9

Multiple Choice

Westminster Manufacturing Company has two support activities and two line activities. The following data pertain to usage patterns for the support and line activities: The costs of Maintenance are allocated based on square footage used. Human Resources costs are allocated based on number of employees. Activity A and B costs are overhead costs with predetermined overhead rates computed based on direct labor hours. If the company uses the step-down method of allocating support activities to line activities and allocates the cost of Maintenance first, what amount of Human Resources costs will be allocated to Activity A?

• A) $8,000
• B) $9,454
• C) $20,000
• D) $4,545
• E) None of the above.

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Definitions:

Glomerular (Bowman's) Capsule

A cup-like sac at the beginning of the tubular component of a nephron in the kidney that performs the first step in the filtration of blood.

Nephron

Microscopic kidney unit that regulates blood composition by glomerular filtration, tubular reabsorption, and tubular secretion.

Glomerulus

A network of capillaries located within the kidney that filters blood, initiating the process of urine formation.

Alveoli

Small air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place, crucial for breathing and gas exchange.