Stronghold, Inc Support Department Costs NOT Allocated to the Two Brochure Centers

question 135

Multiple Choice

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. During the first month, the costs of the support department were expected to be $400,000. Of this amount, $120,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $256,000 and actual fixed costs of $144,000.
Normal and actual activity (brochures made) are as follows: $\begin{array}{lcc}& \text { Brochure Center 1 } & \text { Brochure Center 2 } \\\text { Normal activity (brochures) } & 1,200,000 & 800,000 \\\text { Actual activity (brochures) }& 1,000,000 & 880,000\end{array}$
Support department costs NOT allocated to the two brochure centers are:

• A)$16,800.
• B)$19,680.
• C)$44,000.
• D)$8,000.

---

Definitions:

Facial Expressions

Movements of the facial muscles that convey emotions or reactions, serving as nonverbal communication among humans.

Eibl-Eibesfeldt

Pertains to Irenäus Eibl-Eibesfeldt, a renowned ethologist notable for his contributions to the study of human behavior and evolution.

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans are said to possess.

Facial Expressions

Visible changes in the face that convey a person’s emotional state, intentions, or social communications, often universally recognized.