Russet Company Has Two Service Departments and Two Producing Departments

question 107

Multiple Choice

Russet Company has two Service Departments and two Producing Departments. Budgeted costs and budgeted activity in the various departments for the most recent year are presented below:
$\begin{array} {| l | r | r | r | r | } \hline & \begin{array} { r } \text { Custodial } \\\text { Services }\end{array} & \text { Cafeteria } & \begin{array} { r } \text { Cutting } \\\text { Department }\end{array} & \begin{array} { r } \text { Assembly } \\\text { Department }\end{array} \\\hline \text { Overhead Costs } & \$ 252,000 & \$ 140,000 & \$ 600,000 & \$ 900,000 \\\hline \begin{array} { l } \text { Square Metres of Space } \\\text { Occupied }\end{array} & 1,000 & 2,000 & 8,000 & 10,000 \\\hline \text { Number of Employees } & 20 & 30 & 150 & 200 \\\hline \text { Machine Hour } & & & 40,000 & 60,000 \\\hline\end{array}$ Service Department costs are allocated to Producing Departments with the costs of Custodial Services allocated first on the basis of square metres of space occupied. The costs of the Cafeteria are allocated on the basis of number of employees. Predetermined overhead rates in the Cutting and Assembly departments are based on machine hours. Round all calculations to the nearest dollar.


- Under the direct method of allocation,what would be the amount of Custodial Services cost allocated to the Cutting Department?

• A) $0.
• B) $96,000.
• C) $100,800.
• D) $112,000.

Distinguish between special and general libraries’ purposes and collections.

Understand the concept and importance of experiments in business research.

Distinguish between various forms of communication and research methods.

Recognize the importance of evaluating the reliability of online resources.

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Definitions:

Colleagues

Refers to individuals working together in the same organization or profession, often implying a peer relationship.

Arbitration

A method of dispute resolution where an impartial third party makes a decision to settle the dispute outside of court.

Supportive Relationships

Relationships characterized by mutual support, care, and assistance among individuals, fostering emotional and practical well-being.

Disputes

Conflicts or disagreements that arise between parties which may require negotiation or legal action to resolve.