Sigma, Inc Using the Direct Method, Allocate the Costs of the Administrative

question 38

Multiple Choice

Sigma, Inc., has two support departments, the Administrative Department and the Personnel Department, and two producing departments, the Machining Department and the Blending Department. The Administrative Department costs of $50,000 are allocated on the basis of standard service used. The Personnel Department costs of $10,000 are allocated on the basis of number of employees. The direct costs of Machining Department and Blending Department are $30,000 and $60,000, respectively. Data on standard service hours and number of employees are as follows: $\begin{array}{lrrrr}&\text { Administrative } & \text { Personnel } & \text { Machining } & \text { Blending } \\&\text { Department } & \text { Department } & \text { Department } & \text { Department }\\\text { Standard service hours used } & 200 & 100 & 150 & 250 \\\text { Number of employees } & 10 & 20 & 15 & 10 \\\text { Directlabor hours } & 100 & 80 & 150 & 200\end{array}$
Using the direct method, allocate the costs of the Administrative and Personnel departments to the Machining departments.

• A)$30,450
• B)$27,250
• C)$41,500
• D)$54,750

Understand Social Security benefits and its role in retirement planning.

Identify the characteristics of employer-sponsored retirement plans.

Understand the concept of vesting in employer pension plans.

Differentiate between defined benefit plans and defined contribution plans.

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Definitions:

Significant Amounts

Quantities or volumes that are large enough to be noteworthy or have a considerable impact or importance in a specific context.

Linguistic Relativity Hypothesis

The theory that the structure of a language influences its speakers' worldview or cognition, suggesting that language affects thought processes.

Cultural Heritage

The heritage consisting of tangible objects and intangible qualities inherited from one generation to the next within a community or society.

Gambler's Fallacy

The erroneous belief that if a particular outcome occurs more frequently in a specific period, it will occur less frequently in the future, or vice versa.