Use the Following Information to Answer the Following Questions

question 81

Multiple Choice

Use the following information to answer the following Questions
The Dahle Manufacturing Company has two production departments (Assembly and Finishing) and two service departments (Human Resources and Janitorial) . The projected usage of the two service departments is as follows:

The budgeted costs in the service departments are: Human Resources, $90,000 and Janitorial, $50,000.

-Using the step-down method and assuming the Human Resources Department is allocated first, the amount of Human Resources cost allocated to the Assembly Department is:

• A) $21,053.
• B) $28,947.
• C) $54,000.
• D) $60,000.
• E) $78,842.

Identify the effects of different allocation bases on overhead assignment.

Calculate overhead assigned to products or units based on given rates and activities.

Understand the objectives and principles behind the creation of accounting standards by the FASB and the flexibility offered by IFRS.

Recognize the global impact of IFRS and the efforts for convergence with U.S. GAAP by IASB and FASB.

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Definitions:

Foreclosed

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has failed to make payments, by forcing the sale of the asset used as the collateral for the loan.

Mortgage Payments

Regular payments made towards the principal and interest of a mortgage loan, often on a monthly basis, to pay off the borrowed amount over time.

Security Interest

A legal right or claim on property, granted to a creditor, ensuring the property serves as collateral for a debt and can be repossessed if the debt is not repaid.

Security Agreement

A legal document that provides a lender a security interest in a specified asset or property that is pledged as collateral for a loan.