(Appendix 4B) Ockey Corporation Uses the Direct Method to Allocate

question 47

Multiple Choice

(Appendix 4B) Ockey Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Information Technology and Personnel, and two operating departments, Fabrication and Customization.
Information Technology Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees.
-The total Fabrication Department cost after service department allocations is closest to:

• A) $270,110
• B) $277,969
• C) $280,623
• D) $274,308

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Definitions:

Duty Of Care

Duty of care refers to the legal obligation to ensure the safety or well-being of others while performing any acts that could foreseeably harm them.

Severity Of The Harm

An assessment of the extent of damage or injury inflicted, used in determining liability and damages in legal cases.

Duty to Provide

An obligation to supply or make available what is due under the terms of a contract, law, or moral responsibility.

Reasonable Protection

Reasonable protection generally refers to the adequate measures or steps taken to safeguard individuals, property, or information from harm or damage.