Behrend Clinic Uses the Direct Method to Allocate Service Department

question 315

Multiple Choice

Behrend Clinic uses the direct method to allocate service department costs to operating departments. The clinic has two service departments, Personnel and Support, and two operating departments, Prenatal and Pediatrics. Personnel Department costs are allocated on the basis of employee hours and Support Department costs are allocated on the basis of space occupied in square feet. The total Pediatrics Department cost after the allocations of service department costs is closest to:

• A) $308,241
• B) $310,514
• C) $310,046
• D) $303,900

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Definitions:

Artifacts

Tangible or visible elements in an organization's culture, such as its language, symbols, stories, rituals, and physical setup, which serve as expressions of its values and norms.

Identifiable Elements

Refers to components within a system or environment that can be distinctly recognized and differentiated from one another.

Culture

A set of shared values, beliefs, customs, practices, and social behavior of a particular nation or people.

Unobservable Culture

The components that lie beneath the surface of an organization, such as company values and assumptions.