Rust Company Has Two Support Departments (S1 and S2) and Two

question 111

Multiple Choice

Rust Company has two support departments (S1 and S2) and two producing departments (X and Y) . Department S1 serves departments S2, X, and Y in the following percentages, respectively: 10%, 35%, 55%. Department S2 serves departments S1, X, and Y in the following percentages, respectively: 6%, 50%, and 44%. Direct department costs for S1, S2, X, and Y are $15,000, $8,000, $105,000, and $97,500, respectively.
-Refer to the figure.What are the total costs to be allocated from Department S1?

• A)$800
• B)$9,500
• C)$15,000
• D)$15,573

Recognize the importance of cash equivalents in financial reporting.

Understand how noncash investing and financing activities are reported.

Interpret the impact of transactions on cash flows and the financial position of a company.

Recognize how the direct and indirect methods for cash flows from operating activities are applied.

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