The Thomas Corporation Has Two Service Departments and Two Operating

question 203

Multiple Choice

The Thomas Corporation has two service departments and two operating departments. The following data are available for a recent period: Thomas allocates service department costs by the step-down method in the following order: Administrative Department costs are allocated first, based on number of employees; Custodial Department costs are allocated second, based on square feet occupied. No distinction is made between fixed and variable costs.After the allocations, the total amount of overhead cost contained in the Finishing Department will be:

• A) $156,800
• B) $151,300
• C) $154,667
• D) $138,450

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Definitions:

Minnesota Multiphasic Personality Inventory

A comprehensive psychological test that assesses personality traits and psychopathology, widely used in mental health.

Projective Test

A type of personality test in which a person responds to ambiguous stimuli, revealing hidden emotions and internal conflicts based on their projections.

Unconscious Thoughts

Thoughts and processes in the mind that occur without conscious awareness or control.

Sublimation

Sublimation is a defense mechanism in psychology where socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.