Ockey Corporation Uses the Direct Method to Allocate Service Department

question 272

Multiple Choice

Ockey Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Information Technology and Personnel, and two operating departments, Fabrication and Customization. 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 amount of Information Technology Department cost allocated to the two operating departments is closest to:

• A) $13,027
• B) $33,334
• C) $20,667
• D) $151,158

---

Definitions:

Disproportionate

Something that is out of proportion in size, degree, or intensity compared to something else.

Context

The circumstances, atmosphere, attitudes, and events surrounding a text or occurrence.

Neurotic Anxiety

A form of anxiety resulting from an unconscious fear that the control of one's impulses or unacceptable feelings will be lost, leading to inappropriate actions.

Impulsivity

The tendency to act on urges and desires with minimal consideration for consequences, often leading to reactionary and hasty decisions.