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:

Class Action Suit

A legal proceeding where a group of people with similar grievances sue a defendant as a collective body.

Original Jurisdiction

The authority of a court to be the first to hear and adjudicate a case, before any appeal.

Legislature

A governmental body with the authority to make, amend, and repeal laws within a certain jurisdiction.

Interrogatories

are written questions used in civil litigation, sent by one party to another, which must be answered as part of the discovery process.