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

question 71

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.What amount of the cafeteria's cost will be allocated to the molding department?

• A)$27,000
• B)$9,600
• C)$2,400
• D)$36,000

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Definitions:

Specific Cause

A distinct and identifiable cause that leads to a particular effect or outcome, often investigated in problem-solving processes.

Acceptable Quality Level (AQL)

The quality level of a lot considered good.

Insurance Claim Payouts

The money paid by an insurance company to a policyholder following a claim's approval, covering losses or damages as specified in the policy.

P-chart

A type of control chart used in statistical quality control that monitors the proportion of defective items in a process over time.