Henderson Industrial Products Uses a Centralized Service Department for Procurement

question 136

Multiple Choice

Henderson Industrial Products uses a centralized service department for procurement of raw materials, servicing all three of its divisions-Construction, Manufacturing, and Military. The total monthly costs of the procurement department are $480,000. Of these costs, 80% are traceable to the divisions, and 20% are considered untraceable. Henderson has decided to assign the traceable costs to the divisions based on number of purchase orders processed. Below is a list of the purchase orders per division. How much of the procurement department's cost should be assigned to the Manufacturing Division?

• A)$240,000
• B)$144,000
• C)$192,000
• D)$186,000

---

Definitions:

Patient Protection

Policies and practices designed to safeguard patients' health, privacy, and rights within the healthcare system.

Affordable Care Act

A comprehensive healthcare reform signed into law in 2010 in the United States, aimed at expanding health insurance coverage and reducing the costs of healthcare.

Health Insurance

A form of insurance coverage that pays for medical and surgical expenses incurred by the insured, often including preventive healthcare.

Patient Protection

Measures and regulations designed to safeguard patients' health, privacy, and rights within the healthcare system.