The Managers of Conch, Inc If the Reciprocal Method Is Used, the Computer Costs Allocated

question 25

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 computer costs allocated to operating department 1 will be:

• A) $47,031
• B) $27,500
• C) $30,584
• D) $22,000

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Definitions:

Slow Pathway

A neural transmission route that takes longer due to the involvement of intermediate neurons, often associated with deliberate and considered responses.

Place Theory

A theory that proposes that our perception of sound depends on where each component frequency produces vibrations along the basilar membrane of the inner ear.

Low-Frequency Sounds

Sounds that have a frequency at the lower end of the audible range, typically below 250 Hz, often felt as vibrations more than they are heard.

High-Frequency Sounds

Sounds that have a high pitch, usually perceived as having a frequency over 2,000 Hz, which are often more difficult for certain populations, especially older adults, to hear.