(Appendix 4B) the Thomas Corporation Has Two Service Departments and Two

question 56

Multiple Choice

(Appendix 4B) The Thomas Corporation has two service departments and two operating departments. The following data are available for a recent period:
Thomas allocates service department costs by the step-down method in the following order: Administrative Department costs are allocated first, based on number of employees; Custodial Department costs are allocated second, based on square feet occupied. No distinction is made between fixed and variable costs.
-After the allocations,the total amount of overhead cost contained in the Finishing Department will be:

• A) $156,800
• B) $151,300
• C) $154,667
• D) $138,450

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Definitions:

Learned Helplessness

A psychological state in which an individual learns to believe that they are powerless to change their situation despite the availability of opportunities to do so.

Self-fulfilling Prophecy

When persons behave toward another person according to a label (impression) and cause the person to respond in ways that confirm the label.

Stereotype Threat

The suspicion a member of a group holds that he or she will be judged based on a common stereotype of the group.

Confirmation Bias

The tendency to focus on information relevant to a belief and ignoring or downplaying information that is inconsistent with that belief.