Ransom Widgets Allocates the Estimated Cost of Its Accounting Department

question 114

Short Answer

Ransom Widgets allocates the estimated cost of its accounting department, $200,000, to its production and sales departments since the accounting department supports these departments with regard to payroll and accounts payable functions.The accounting department costs will be allocated based on the number of employees using the direct method.Information regarding employees follows: $$\begin{array} { l c } \text { Departm ent } & \text { Emplovees } \\\hline \text { Accounting } & 4 \\\text { Production } & 36 \\\text { Sales } & 12\end{array}$$ How much of the accounting department costs will be allocated to the production and sales departments, respectively? $\begin{array}{lcr} & \text { Production } & \text { Sales } \\\text { A. } & \$ 150,000 & \$ 50,000 \\\text { B. } & \$ 180,000 & \$ 60,000 \\\text { C. } & \$ 1,800,000 & \$ 600,000 \\\text { D. } & \$ 22,222 & \$ 66,667\end{array}$

---

Definitions:

Culturally Responsive

An approach that recognizes and respects diverse cultural backgrounds and practices as integral to effectively teaching and engaging individuals or communities.

Time-intensive

Describing activities or tasks that require a substantial amount of time to complete, often implying significant commitment and effort.

Cytosol

The aqueous component of the cytoplasm of a cell, within which various organelles and particles are suspended.

Organelles

Specialized structures within a cell that perform specific functions, like mitochondria, ribosomes, and the endoplasmic reticulum.