PIR Corporation Has 2 Support Departments and 2 Operating Departments

question 2

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 dual-rate allocation and the direct method, the variable cost allocation rate for janitorial services will be:

• A) $0.50 per square metre
• B) $0.61 per square metre
• C) $0.70 per square metre
• D) None of the above

---

Definitions:

Therapeutic Immobilization

A medical treatment approach that involves restricting movement to promote healing or reduce pain.

Active Movement

Physical movement initiated and controlled by an individual, often involving exercise or other physical activity to enhance or maintain physical fitness.

Strengthening Joints

Exercises or activities aimed at improving the function and stability of joints, often to reduce pain or injury risk.

Thrombus Formation

The process of blood clotting within a vessel, which can obstruct blood flow and lead to various health complications.