San Juan Minerals (SJM) Has Two Service Departments and Two

question 19

Multiple Choice

San Juan Minerals (SJM) has two service departments and two operating departments. Operating data for these departments for last year are as follows: Costs of the Maintenance Department are allocated on the basis of machine hours. Cafeteria costs are allocated on the basis of number of employees. San Juan Minerals does not distinguish between variable and fixed overhead costs.Assuming that San Juan Minerals allocates service department costs using the direct method, the total cost allocated from Maintenance to Processing would be closest to:

• A) $21,600
• B) $18,783
• C) $26,400
• D) $20,571

---

Definitions:

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Organizational Experiences

The cumulative interactions and events individuals encounter within a workplace, shaping their perceptions, attitudes, and behaviors toward the organization.

Legends

Traditional stories or myths passed down through generations, often with historical or cultural significance but not verifiable.

Competing Values Framework

A procedure that provides a way to identify, measure, and change organizational culture.