The Direct Method Is Used by Marrero Publishing, Incorporated, to Allocate

question 180

Multiple Choice

The direct method is used by Marrero Publishing, Incorporated, to allocate service department costs to operating departments. The company has two service departments, Information Technology and Personnel, and two operating departments, Prepress and Printing. Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total Prepress Department cost after service department allocations is closest to:

• A) $406,961
• B) $413,326
• C) $402,881
• D) $410,563

---

Definitions:

Standard Deviation

A statistical measurement that quantifies the variation or dispersion of a set of data values from the mean.

Range

In statistics, range refers to the difference between the highest and lowest values in a dataset, indicating the dataset's spread.

Arithmetic Average

The average of a set of numbers, determined by adding them together and then dividing by the total quantity of numbers in the set.

Distribution

Refers to the arrangement or spread of data points in statistics or the way a resource is spread out across an area or population in geography.