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

question 41

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.
-Suppose the company uses the step-down method and Personnel Department costs are allocated first.The amount of the Personnel Department cost allocated to the Engineering Department would be closest to:

• A) $16,828
• B) $17,714
• C) $0
• D) $112,189

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Definitions:

Norepinephrine

A neurotransmitter important for attentiveness, emotions, sleeping, dreaming, and learning.

Neurotransmitter

A chemical substance that transmits signals across synapses between neurons in the nervous system.

Blood Pressure

The force exerted by circulating blood on the walls of the body's arteries, vital for providing oxygen and nutrients to tissues and organs.

Heart Rate

The number of heartbeats per unit of time, usually measured in beats per minute (bpm), indicating the heart's efficiency in pumping blood throughout the body.