Use the Following Information for the Next 5 Questions

question 72

Multiple Choice

Use the following information for the next 5 questions.
Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B) . The following data are given:
-If the direct method were used, how much computer cost would be allocated to the utilities department?

• A) $0
• B) $18,750
• C) $11,250
• D) $ 8,250

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Definitions:

MSB = MSC

MSB (Marginal Social Benefit) equals MSC (Marginal Social Cost) represents the point of allocative efficiency in goods and services production, where social welfare is maximized.

Coal Mine Pollution

Environmental damage caused by the extraction and processing of coal, including water, air, and soil contamination.

Environmental Standard

Guidelines and criteria set by authorities or international bodies to protect the environment by regulating emissions, pollutants, and resource usage.

Climate Change

Long-term shifts and alterations in temperature, precipitation patterns, and weather events, largely attributed to human activity, especially carbon emissions.