(Appendix 4B) Prestwich Corporation Has Two Service Departments and Two

question 43

Multiple Choice

(Appendix 4B) Prestwich Corporation has two service departments and two operating departments. Costs of the Building and Grounds service department are allocated to other departments on the basis of square feet of space occupied. The departments in the company and the amount of space occupied by each are presented below:
Budgeted costs in the Building and Grounds department total $34,800 for the year.
-The amount of Building and Grounds department cost allocated to Operating Department A under the direct method would be:

• A) $0
• B) $11,600
• C) $12,000
• D) $13,920

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Definitions:

Common Law

A legal system characterized by court judgments and precedents rather than statutes, often contrasted with civil law systems.

Reinstatement

The process of restoring a person or entity to a former position, status, or condition, often used in employment or insurance contexts.

Employer's Liability

The legal responsibility of an employer for injuries or damages suffered by employees as a result of their employment.

Course of Employment

Refers to the range of activities employees are or can reasonably be expected to be engaged in as part of their job or while working.