VelCraft Allocates Costs from Its Payroll Department and the Maintenance

question 16

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: $\begin{array}{lrrr}&&\text { Number of } & \text { Number of Square } \\\text { Department } & \text { Costs } &\text { Emplovees }&\text { feet Occupied }\\\text { Payroll } & \$ 150,000 & 2 & 2,000 \\\text { Maintenance } & \$ 220,000 & 8 & 64,000 \\\text { Molding } & & 75 & 100,000 \\\text { Finishing } & & 50 & 60,000 \\\text { Packaging } & & 25 & 40,000\end{array}$ When the payroll department costs are allocated, what is the amount per employee that will be charged to each of the departments?

• A)$937.50
• B)$15,000
• C)$6.67
• D)$1,000

Compute cash flows associated with the sale or purchase of plant assets.

Calculate depreciation and its effect on cash flow from operating activities.

Explain the treatment of non-cash transactions in the cash flow statement.

Understand the impact of stock transactions on the cash flow statement.

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Definitions:

Pituitary

A small endocrine gland located at the base of the brain, often termed the "master gland," it plays a crucial role in regulating vital body functions and general wellbeing.

Microelectrode

A small wire used to monitor the electrical activity of or stimulate activity within a single neuron.

Electrical Activity

The movement of charged particles, such as ions, within cells or tissues, crucial for functions in the nervous system and heart.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells, through electrical and chemical signals.