Ransom Widgets Allocates the Estimated Cost of Its Accounting Department

question 114

Short Answer

Ransom Widgets allocates the estimated cost of its accounting department, $200,000, to its production and sales departments since the accounting department supports these departments with regard to payroll and accounts payable functions.The accounting department costs will be allocated based on the number of employees using the direct method.Information regarding employees follows: $$\begin{array} { l c } \text { Departm ent } & \text { Emplovees } \\\hline \text { Accounting } & 4 \\\text { Production } & 36 \\\text { Sales } & 12\end{array}$$ How much of the accounting department costs will be allocated to the production and sales departments, respectively? $\begin{array}{lcr} & \text { Production } & \text { Sales } \\\text { A. } & \$ 150,000 & \$ 50,000 \\\text { B. } & \$ 180,000 & \$ 60,000 \\\text { C. } & \$ 1,800,000 & \$ 600,000 \\\text { D. } & \$ 22,222 & \$ 66,667\end{array}$

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Definitions:

Surrogate Mothers

Women who carry and deliver a baby on behalf of another person or couple, often involving a legal or informal agreement.

Bodily Contact

Physical touch or connection between individuals, important for emotional bonding and development in humans.

Visual Stimulation

Exposure to sights or images that can affect cognitive and emotional states, fostering attention and perception.

Surrogate Mothers

Women who agree to carry and give birth to a child for another person or couple, transferring the legal and parental rights after birth.