Ransall Auto Parts Has Two Service Departments-Maintenance and Personnel, and Three

question 100

Multiple Choice

Ransall Auto Parts has two service departments-maintenance and personnel, and three production departments-fabrication, assembly, and packaging.Service costs are allocated to producing departments using the direct method.Information on overhead in each department and possible allocation bases appear below: $\begin{array}{lrrrrr}&\text { Maintenance}&\text { Personnel }&\text {fabrication }&\text {Assembly }&\text {Packaging }\\\text { Cost } & \$ 90,000 & \$ 130,000 & & & \\\text { Machine hours } & & & 12,000 & 30,000 & 18,000 \\\text { Employees } & 4 & 16 & 24 & 30 & 26\end{array}$ Using the most logical activity base, how much maintenance cost will be allocated to the personnel department?

• A)$26,000
• B)$39,000
• C)$18,000
• D)$0

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Definitions:

Preconventional

A stage in Kohlberg's theory of moral development where behavior is influenced by rewards and punishments.

Conventional

Following traditional forms or methods; typical and based on accepted standards.

Postconventional

A stage of moral development in which individuals make decisions based on universal principles and the internalization of these principles as personal ethics.

Character Formation

The process of developing and shaping one's ethical and moral qualities and values.