Stoltz Corporation Uses the Direct Method to Allocate Service Department

question 195

Multiple Choice

Stoltz Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Data Processing and Personnel, and two operating departments, Assembly and Finishing. Data Processing 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 Data Processing Department cost allocated to the two operating departments is closest to:

• A) $23,245
• B) $26,488
• C) $61,567
• D) $16,874

---

Definitions:

Mana

A concept in Polynesian culture referring to a supernatural force or spiritual energy inherent in people, objects, and the environment.

Animatism

The belief that nature is enlivened or energized by an impersonal spiritual force or supernatural energy, which may make itself manifest in any special place, thing, or living creature.

Priests

Priests are religious leaders authorized to perform sacred rituals and guide individuals in matters of faith within various religions.

Priestesses

Female religious leaders or practitioners who perform sacred rites and ceremonies in various religious traditions.