County Company Has Two Service Departments, Maintenance and Personnel, as Well

question 123

Multiple Choice

County Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage, while personnel costs are allocated based on number of employees. The following information has been gathered for the current year:

-If the direct method is used to allocate costs, the total cost of the Finishing Department after allocation would be

• A) $30,857.
• B) $27,429.
• C) $158,286.
• D) $100,000.

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Definitions:

Deinstitutionalization

The process of releasing individuals from institutional care (such as psychiatric hospitals) to community-based treatments.

Mental Hospitals

Facilities specialized in the treatment and care of individuals with mental health disorders.

Policy

A deliberate system of principles to guide decisions and achieve rational outcomes.

Psychiatric Patients

Individuals receiving treatment for mental health disorders, ranging from mood disorders to more complex psychiatric conditions.