PIR Corporation Has 2 Support Departments and 2 Operating Departments

question 7

Multiple Choice

PIR Corporation has 2 support departments and 2 operating departments. Number of employees is used as an allocation base for personnel support costs, and square metres are used for janitorial support costs. A breakdown of their costs, along with other operating information, is shown below for a recent accounting period: If PIR uses single-rate allocation and the direct method, the allocation rate for personnel will be:

• A) $280 per employee
• B) $215 per employee
• C) $187 per employee
• D) None of the above

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Definitions:

Limited Duration

Describes contracts, agreements, or conditions that are effective for a specific, finite period of time.

Minor Name Changes

The legal process of altering one's name, which may involve slight modifications without affecting identity significantly.

Shareholder Action

Activities taken by stockholders to influence corporate governance, policies, or management, often through voting or lawsuits.

Management Buyout

A management buyout is a transaction where a company's existing managers acquire a significant portion or all of the company from its owners.