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

question 116

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 step-down method of allocating costs is used, and the Personnel Department renders the greatest service, then the total amount of overhead that would be allocated from Maintenance to Finishing is

• A) $24,000.
• B) $33,429.
• C) $27,000.
• D) $32,568.

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Definitions:

Unknown Mean

Refers to a situation in statistics where the average value of a dataset is not known and needs to be estimated.

Normal Random Variable

A variable that assumes any of the infinitely many values in a normal distribution curve.

Lifespan

The duration of time an organism, object, or process exists or functions until it ceases to do so.

Salmon Flies

Artificial fishing baits designed to imitate the adult form of salmon flies used in fly fishing.