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

question 3

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.
-Assume that SJM uses the step-down method to allocate service department costs,starting with Maintenance.The total overhead allocated from Cafeteria to Processing would be closest to:

• A) $21,316
• B) $22,398
• C) $21,279
• D) $23,643

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Definitions:

Strategic Norms

Unwritten rules that align with the long-term goals and strategic objectives of an organization or team, guiding member behavior toward these aims.

Material Resources

Physical or tangible assets that can be utilized to accomplish tasks or achieve objectives.

Working Group

A group of individuals who come together to achieve a specific goal or task, typically within a professional context.

Collective Responsibilities

The shared duties and obligations of a group where each member is accountable to one another for the group's outcomes.