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

question 74

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.When the cafeteria's costs are allocated, what is the amount per employee that will be allocated to the packaging department each year?

• A)$2,400
• B)$9,600
• C)$1,800
• D)None of these answer choices are correct.

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Definitions:

Reasonably Definite Terms

A principle that a contract must be clear enough in its terms so that the obligations of each party can be understood and enforced.

Offer

A key factor in the agreement element of a contract; consists of the terms and conditions set by one party, the offeror, and presented to another party, the offeree.

Elements

Elements are the basic components or essential parts that make up something, such as the periodic table elements in chemistry or the parts of a legal claim.

Offeree

is the person or entity to whom an offer is made, especially in the context of contracts, who has the power to accept or decline the offer presented.