VelCraft Allocates Costs from Its Payroll Department and the Maintenance

question 18

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: $\begin{array}{lrrr}&& \text { Number of } & \text { Number of Square } \\\text { Department }&\text { Costs } & \text { Emplovees } & \text { Feet Occupied }\\\hline \text { Payroll } & \$ 150,000 & 2 & 2,000 \\\text { Maintenance } & \$ 220,000 & 8 & 64,000 \\\text { Molding } & & 75 & 100,000 \\\text { Finishing } & & 50 & 60,000 \\\text { Packaging } & & 25 & 40,000\end{array}$ When the maintenance department costs are allocated, what amount will be charged to the molding department? (Round your intermediate calculation to two decimal places)

• A)$44,000
• B)$82,707
• C)$110,000
• D)$52,932

Understand the significant components and the emphasis of care coordination in nursing.

Identify which models of care coordination are appropriate for specific populations like children and teens.

Understand the function of medical models in care coordination and their specificity.

Communicate effectively about the essence and benefits of care coordination to patients.

---

Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Implicit Rate

The interest rate inherently included in the lease payments, reflecting the lessor's cost of financing.

Incremental Borrowing Rate

The interest rate a company would have to pay if it borrows funds, used as a benchmark in lease accounting to determine the present value of lease payments.

Net Income

The total earnings or profit of a company after all expenses and taxes have been deducted from revenue.