Intermodal Moving Uses the Direct Method and Allocates Its Maintenance

question 69

Short Answer

Intermodal Moving uses the direct method and allocates its maintenance costs on the basis of repair hours and its payroll department costs on the basis of employees.Estimated costs and information on the services and production departments follows: $\begin{array}{ll}\text { Payroll } & \$ 36,000 \\\text { Maintenance } & \$ 48,000\\\text { Packing }&30 \text { employees, } 280 \text { repair hours }\\\text { Driving }&10 \text { employees, } 1,960 \text { repair hours }\end{array}$
How much of the payroll and maintenance costs will be allocated to the packing department?

$\begin{array}{lrr} & \text { Payroll } & \text { Maintenance } \\\text { A. } & \$ 900 & \$ 171.43 \\\text { B. } & \$ 27,000 & \$ 6,000 \\\text { C. } & \$ 27,000 & \$ 21.43 \\\text { D. } & \$ 1,200 & \$ 6,000\end{array}$

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Definitions:

Planned Behavior

A theory that suggests human action is guided by behavioral intentions, which are influenced by attitudes, subjective norms, and perceived control.

Illegal Downloading

The act of obtaining files, such as music, movies, or software, from the internet without proper authorization or payment.

Intervention

The act of intervening in a situation or process to improve outcomes or prevent undesirable consequences.

Cognitive Dissonance

The discomfort experienced when holding two or more conflicting cognitions (ideas, beliefs, values, emotional reactions).