(Appendix 4B) Anchor Corporation Has Two Service Departments, Personnel and Engineering

question 38

Multiple Choice

(Appendix 4B) Anchor Corporation has two service departments, Personnel and Engineering, and two operating departments. The costs of the Personnel Department are allocated to other departments on the basis of the number of employees in the departments. Departments and number of employees are as follows:
Costs in the Personnel Department total $168,283 per year.
-Assuming that SJM allocates service department costs using the direct method,the total cost allocated from Cafeteria to Mining would be closest to:

• A) $21,687
• B) $15,750
• C) $23,684
• D) $22,500

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Definitions:

Frontenac

A historical figure or location, often associated with Louis de Buade, Count of Frontenac, a key governor of New France in the late 17th century, or with places named in his honor.

Great Lakes

The Great Lakes are a group of five large freshwater lakes located on the border between the United States and Canada, forming the largest group of freshwater lakes in the world by total area.

Mississippi Valley

A large geographical area in the United States drained by the Mississippi River, encompassing various states and characterized by rich soil and diverse ecosystems.

Indian Resistance

Refers to the various acts of opposition and warfare by Native American tribes against European colonization, U.S. expansion, and policies from the 17th to the 19th centuries.