Stoltz Corporation Uses the Direct Method to Allocate Service Department

question 17

Multiple Choice

Stoltz Corporation uses the direct method to allocate service department costs to operating departments.The company has two service departments,Data Processing and Personnel,and two operating departments,Assembly and Finishing. Data Processing Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees.The total amount of Data Processing Department cost allocated to the two operating departments is closest to:

• A) $23,245
• B) $26,488
• C) $61,567
• D) $16,874

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Definitions:

Unipolar Depression

A major depressive disorder characterized by a persistent low mood and a lack of interest in activities, without the mood swings seen in bipolar disorder.

Cognitive-Behavioral Therapy

A psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, aimed at changing negative thought patterns and behaviors.

Psychodynamic Therapy

A form of psychotherapy that explores the psychological forces underlying human behavior, feelings, and emotions, and how they may relate to early experiences.

Unipolar Depression

A mood disorder characterized by a persistent feeling of sadness or lack of interest in external stimuli, also known as major depression.