VelCraft Allocates Costs from Its Payroll Department and the Maintenance

question 98

Multiple Choice

VelCraft allocates costs from its payroll department and the maintenance department to its production departments using the direct method of allocation.Payroll department costs are allocated based on the number of employees in the department and maintenance department costs are allocated based on the number of square feet that the production department occupies within the factory.Information about the departments is presented below: $\begin{array}{lrrr}&&\text { Number of } & \text { Number of Square } \\\text { Department } & \text { Costs } &\text { Emplovees }&\text { feet Occupied }\\\text { Payroll } & \$ 150,000 & 2 & 2,000 \\\text { Maintenance } & \$ 220,000 & 8 & 64,000 \\\text { Molding } & & 75 & 100,000 \\\text { Finishing } & & 50 & 60,000 \\\text { Packaging } & & 25 & 40,000\end{array}$ What amount of the payroll department costs will be allocated to the molding department?

• A)$70,313
• B)$185,000
• C)$75,000
• D)$132,353

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Definitions:

Experimental Group

the group in an experiment that receives the treatment or intervention being tested.

Control Group

In experimental research, the group of subjects not exposed to the treatment or intervention being tested, serving as a benchmark to measure the effects of the treatment.

Discipline Of Psychology

The scientific study of mind and behavior, encompassing various subfields such as cognitive, developmental, clinical, and social psychology.

Science Of Behavior

The systematic study of how behavior is affected by the environment and other stimuli.