VelCraft Allocates Costs from Its Payroll Department and the Maintenance

question 32

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: $\begin{array}{lrrr}&& \text { Number of } & \text { Number of Square } \\\text { Department }&\text { Costs } & \text { Emplovees } & \text { Feet Occupied }\\\hline \text { Payroll } & \$ 150,000 & 2 & 2,000 \\\text { Maintenance } & \$ 220,000 & 8 & 64,000 \\\text { Molding } & & 75 & 100,000 \\\text { Finishing } & & 50 & 60,000 \\\text { Packaging } & & 25 & 40,000\end{array}$ What amount of the payroll department costs will be allocated to the packaging department?

• A)$23,438
• B)$73,333
• C)$25,000
• D)$36,667

Grasp the historical context and the evolution of international monetary systems.

Analyze the impact of major global financial crises on international trade and finance.

Understand the concept and implications of Eurobonds and their role in international finance.

Understand and apply the concept of absolute value functions to graph equations.

---

Definitions:

Continuous Process

An ongoing operation or production method that runs 24/7 without interruption.

Long Periods

Duration of time that is considered to be significantly longer than average or expected, often used in the context of planning, investment, or observation.

Production Process

The method or sequence of operations involved in the manufacture or assembly of an item or service.

Analytic System

A structured method for analyzing data or solving problems, typically involving mathematical or statistical techniques to interpret complex datasets.