(Appendix 4B) the Thomas Corporation Has Two Service Departments and Two

question 56

Multiple Choice

(Appendix 4B) The Thomas Corporation has two service departments and two operating departments. The following data are available for a recent period:
Thomas allocates service department costs by the step-down method in the following order: Administrative Department costs are allocated first, based on number of employees; Custodial Department costs are allocated second, based on square feet occupied. No distinction is made between fixed and variable costs.
-After the allocations,the total amount of overhead cost contained in the Finishing Department will be:

• A) $156,800
• B) $151,300
• C) $154,667
• D) $138,450

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Definitions:

Bicarbonate Reabsorption

The process by which the kidneys reclaim bicarbonate ions from the urinary filtrate, helping to maintain blood pH balance and electrolyte concentration.

Body Fluids

Liquids within the human or animal body that transport nutrients and waste, including blood, lymph, and interstitial fluid.

Chemicals

Substances with a distinct molecular composition that are used or produced in processes involving chemical reactions.

pH

A measure of the acidity or alkalinity of a solution, defined by the negative logarithm of the hydrogen ion concentration.