Assume Porter's Consulting Uses the Number of Purchase Orders as the Cost

question 22

Multiple Choice

Assume Porter's Consulting uses the number of purchase orders as the cost driver for allocating purchasing costs of $285,000.If Porter issues 1,000 purchase orders, including 300 used by line activity one, 400 used by line activity two, 50 for supplies used by purchasing itself, and 250 used by administration, how much of the cost will be allocated to line activity two using the direct method of allocation?

• A)$199,500
• B)$114,000
• C)$162,857
• D)$195,000
• E)None of the above.

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Definitions:

Identifiable Roles

Specific, recognizable functions or positions individuals hold within a group or society, which come with certain expectations and responsibilities.

Collegiality

A principle or practice of cooperation and mutual respect among colleagues, typically within a professional setting, fostering a positive and collaborative work environment.

Communication Patterns

The ways in which information is transmitted and received within a given context, often focusing on interpersonal and organizational communications.

Instrumental Objectives

Goals that are pursued as means to an end, serving as tools or mechanisms to achieve something else.