Brownley Company Has Two Service Departments and Two Operating (Production)

question 123

Multiple Choice

Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all three of the other departments in proportion to the number of employees in each. The Maintenance Department costs are allocated to the two operating departments in proportion to the floor space used by each. Listed below are the operating data for the current period: The total cost of operating the Milling Department for the current period is:

• A) $14,280.
• B) $15,912.
• C) $76,500.
• D) $90,780.
• E) $92,412.

---

Definitions:

Right of Recovery

The legal right to seek compensation or restitution for losses or damages suffered.

Breach of Contract

A situation where one or more parties fail to fulfill their obligations under a contract.

Rescind the Offer

Refers to the act of formally withdrawing an offer before it is accepted.

Agency Coupled with Interest

A legal arrangement where an agent is given an irrevocable power or authority due to a vested interest the agent has in the subject of the agency.