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

question 33

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.
-Assume that SJM uses the step-down method to allocate service department costs,starting with Maintenance.The total overhead allocated from Maintenance to Mining would be closest to:

• A) $25,143
• B) $22,957
• C) $51,150
• D) $16,800

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Definitions:

Temporarily Unemployment

A situation where individuals are out of work for a short period of time, often due to changes in market conditions or transitional phases between jobs.

Marginally Attached

Refers to workers who are currently not in the labor force but have looked for work in the past and are willing to take a job if one becomes available.

Labor Force

All the non-institutionalized, civilian working-age population that is employed or actively seeking employment.

Unemployment Rate

The component of the labor force that is unoccupied by work but is in pursuit of employment opportunities.