Western Incorporated Has Two Service Departments (Human Resources and Building

question 19

Multiple Choice

Western Incorporated has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly) . The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows. $\begin{array} { | l | r | } \hline \text { Human Resources } & 3,500 \\\hline \text { Building Maintenance } & 8,700 \\\hline \text { Machining } & 9,900 \\\hline \text { Assembly } & 15,000 \\\hline\end{array}$ Over how many square feet would the Building Maintenance cost be allocated (i.e., spread) with the direct method and the step-down method? $\begin{array} { | l | c | c | c | } \hline & \begin{array} { c } \text { Direct } \\\text { Method }\end{array} && \begin{array} { c } \text { Step-Down } \\\text { Method }\end{array} \\\hline 1 & 24.900 & & 28.400 \\\hline 2 & 24.900 & & 37.100 \\\hline 3 & 28.400 & & 24,900 \\\hline 4 & 37.100 & & 24.900 \\\hline 5 & 28.400 & & 37.100 \\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Social Deprivation

The lack of socially nurturing environments and relationships, which can lead to adverse effects on development and well-being.

Adult Criminals

Individuals beyond the age of majority who engage in conduct that is considered an offense and punishable by law.

Material Goods

Physical items that are produced, bought, or sold to satisfy needs and desires, including consumer goods.

Social Interest

Concern for the welfare of others and one's community as a guiding principle of behavior.