The Managers of Conch, Inc If the Reciprocal Method Is Used, the Equation Representing the Accurate

question 26

Multiple Choice

The managers of Conch, Inc. want to determine the most accurate allocation of support department costs to operating departments. To make this allocation, the accounting department has collected the following data: $\begin{array}{llll}&&\text { Services Provided By }\\& \underline{\text { Computer}}&& \underline{\text { Cafeteria} }\\\text { Direct costs } & \$ 55,000 & & \$ 35,000 \\\text { Service provided to: } \\\quad \text { Computer department }&-- & & 15 \%\\ \text { Cafeteria } & 10 \% & &-- \\\text { Operating department 1 } & 50 \% & & 40 \% \\\text { Operating department 1 } & 40 \% & & 45 \%\\\end{array}$

If the reciprocal method is used, the equation representing the total cost of the cafeteria is:

• A) Cafeteria = $35,000
• B) Cafeteria = $35,000 + (0.15 × computer cost)
• C) Cafeteria = $35,000 + (0.10 × computer cost)
• D) Cafeteria = $35,000 + 0.10 × ($55,000 + 0.10 × computer costs)

Recognize the implications of McGregor's Theory X and Theory Y on employee motivation.

Explain the strategies for restoring equity as per Adams' theory of inequity.

Distinguish between various types of involvement based on the notion of social exchange in organizational settings.

Comprehend the role of personal needs and how they impact work behavior and motivation, including the need for affiliation.

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Definitions:

Industrial Fiber

Industrial fiber refers to synthetic or natural fibrous materials used in manufacturing for their durability and performance attributes.

Grinding Machine Time

The duration a grinding machine is actually operating to remove material from a workpiece, considered a cost driver in manufacturing processes.

Existing Grinding Capacity

The current maximum volume or quantity of material that can be ground or processed in a facility within a given timeframe.

Variable Cost

Expenses that change in proportion to the volume of goods or services produced.