Use the Following Information for the Next 4 Questions

question 74

Multiple Choice

Use the following information for the next 4 questions.
The accountants for Brock, Inc. are preparing the operating departments overhead budgets. The maintenance department direct costs are $12,000, and the administration department direct costs are $54,000. The following data have been collected about use of services: (based on number of employees)
-Using the reciprocal method, the total costs allocated to the three operating departments from the support departments is

• A) $66,000
• B) $84,000
• C) $59,368
• D) $60,000

Recognize situations in which assignments and delegations can occur legally.

Identify the conditions required for an effective assignment.

Understand the rights of successive assignees under the Restatement.

Analyze the legal status and rights of third-party beneficiaries.

---

Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Working Capital Ratio

a financial metric that measures a company's ability to pay off its current liabilities with its current assets, an indicator of financial health.

Total Current Assets

The total value of all assets that are expected to be converted into cash within one year, including cash, inventory, and receivables.

Total Current Liabilities

The sum of all debts and financial obligations a company is expected to pay within one fiscal year.