Use the Following Information for the Next 5 Questions

question 70

Multiple Choice

Use the following information for the next 5 questions.
The managers at Ithaca Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information.
-(CMA) If Ithaca Manufacturing uses the direct method of allocating support department costs, the total support costs allocated to the assembly department would be

• A) $80,000
• B) $87,500
• C) $120,000
• D) $167,500

---

Definitions:

Decisions

The process of making choices between alternatives to achieve a goal or solve a problem.

Resides

Refers to where something or someone is located or lives.

Individual

A single human being as distinct from a group, class, or family.

Lack of Autonomy

Describes a situation in which individuals have little to no control or independence in their work or decision-making processes.