Use the Following Information for the Next 3 Questions

question 122

Multiple Choice

Use the following information for the next 3 questions.
The personnel department provides service to operating departments A and B. Personnel's budget is based on 250 employees (100 in department A and 150 in department B) . The budget calls for $40,000 in fixed costs, plus $140 per employee. During a recent month the personnel department incurred $41,000 in fixed costs and $42,200 in variable costs. The two operating departments, A and B, had 120 and 140 employees, respectively.
-The CEO of the company described above wants to gather information for a decision to outsource the HR function. Which of the following allocation methods would provide useful information?

• A) A job costing system
• B) A dual rate support department allocation system
• C) A single rate support department allocation system
• D) A process costing system

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Definitions:

Physiological Stress

A reaction of the body to a stimulus or environment that disturbs the physical or mental equilibrium, causing strain to the body's systems.

Central Nervous System

A complex system of nerves and cells that control activities within the body, comprising the brain and spinal cord.

Brain

The brain is an organ of the central nervous system, responsible for processing sensory information and coordinating bodily functions along with cognition and emotions.

Spinal Cord

The spinal cord is a long, thin, tubular structure made up of nervous tissue that extends from the brainstem to the lower back, functioning as the main pathway for information connecting the brain and peripheral nervous system.