ZanaTech Has an On-Site Cafeteria in Which It Provides Free

question 71

Multiple Choice

ZanaTech has an on-site cafeteria in which it provides free meals for employees.The company allocates the cost of the cafeteria to production departments using the direct method based on the number of employees in each department.The four production departments in the company have the following number of employees: molding, 15; polishing, 20; engraving, 10; and packaging, 15.There are 20 employees in the cafeteria.The cafeteria's costs are budgeted at $144,000 for the year.What amount of the cafeteria's cost will be allocated to the molding department?

• A)$27,000
• B)$9,600
• C)$2,400
• D)$36,000

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Definitions:

Test Statistic

A numerical value calculated from a sample data set. It is used in statistical hypothesis testing to determine how extreme the observed data is compared to the null hypothesis.

Standard Error

A statistical measure that quantifies the amount of variability or uncertainty in a sample statistic estimate of a population parameter.

Test Statistic

A calculated value used in statistical testing to determine whether to reject the null hypothesis.

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