Use the Following Information for the Next 3 Questions

question 65

Multiple Choice

Use the following information for the next 3 questions.
PIR Corporation has 2 support departments and 2 operating departments. Number of employees is used as an allocation base for personnel support costs, and square feet are used for janitorial support costs. A breakdown of their costs, along with other operating information, is shown below for a recent accounting period:
-If PIR uses single-rate allocation and the direct method, the allocation rate for personnel will be

• A) $280 per employee
• B) $215 per employee
• C) $187 per employee
• D) None of the above

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Definitions:

Partnership Interest

An ownership stake in a partnership, representing a partner's share of the profits, losses, and capital.

Additional Contributions

Extra payments beyond the minimum required, often referring to retirement accounts or other savings plans.

Cash Distribution

The payment of earnings or assets from a corporation or a financial entity to its shareholders, investors, or partners.

Partnership Income

Earnings distributed to the partners of a partnership from the business, which is reported on their personal income tax returns.