Ockey Corporation Uses the Direct Method to Allocate Service Department

question 114

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) $26,880
• B) $15,929
• C) $58,119
• D) $21,943

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Definitions:

Mindset

An established set of attitudes or beliefs held by someone.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, affecting thoughts, feelings, and behaviors.

Intelligence

The ability to acquire and apply knowledge and skills, and adapt to new situations.

Talents

Describes individuals' natural aptitudes or skills in particular areas, such as art, sports, or intellectual achievements.