Use the Information Below to Answer the Following Question(s)

question 142

Multiple Choice

Use the information below to answer the following question(s) .Joe's Tire Company has two support departments, Personnel and Maintenance.The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used.The Personnel Department costs of $20,000 are allocated based on the number of employees.Costs of Departments A and B are $40,000 and $60,000, respectively.Data on standard service hours and number of employees are as follows:

-How much of the cost of the Maintenance Department is allocated to Department B using the direct method?

• A)$16,000
• B)$12,800
• C)$32,000
• D)$24,000
• E)$60,000

Comprehend the concepts of division of labor, horizontal specialization, and vertical hierarchy in organizational structures.

Recognize the role of boundary-spanning subsystems and their orientation in organizations.

Understand the chain of command and its terminology within organizational hierarchies.

Identify the dynamic interaction between an organization and its environment as a characteristic of an open system.

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Definitions:

Single Entity

A business or organization that is legally recognized as a single unit, distinct from its owners or shareholders.

Exporting

The act of sending goods or services to another country for sale.