PIR Corporation Has 2 Support Departments and 2 Operating Departments

question 115

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 total cost (including support department costs) for Product Assembly will be:

• A) $14,000
• B) $28,000
• C) $30,400
• D) None of the above

---

Definitions:

Sherman Act

A landmark federal statute in the antitrust law that prohibits monopolistic practices and promotes competition.

Robinson-Patman Act

A United States federal law aimed at preventing anticompetitive practices by producers, specifically price discrimination.

Clayton Act

A United States antitrust law enacted in 1914 aimed at increasing economic competition by prohibiting certain types of anti-competitive practices.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed in 1890 to prohibit monopolies and restrictive trade practices.