Pepper Department Store Allocates Its Service Department Expenses to Its

question 72

Multiple Choice

Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: $\begin{array}{l}\begin{array} { l l l } \text { Expense } & \text { Basis for allocation } & \text { Amount } \\\text { Rent } & \text { Square feet of floor space } & \$ 24,000 \\\text { Advertising } & \text { Amount of dollar sales } & \$ 30,000 \\\text { Administrative } & \text { Number of employees } & \$ 45,000\end{array}\\\\\text { The following information is available for its three operating (sales) departments: }\\\\\begin{array} { l c c r c } \text { Department } & \begin{array} { c } \text { Square } \\\text { Feet }\end{array} & \text { Dollar Sales } & \begin{array} { c } \text { Number of } \\\text { employees }\end{array} \\\text { A } & 3,000 & \$280,000 & 6 \\\text { B } & 3,400 & \$300,000 & 8 \\\text { C } & 3,600 & \$420,000 & 10 \\\text { Totals } & \underline { 10,000 } &\$1,000,000 &24 \\\hline\end{array}\end{array}$
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What is the total expense allocated to Department B?

• A) $30,462.
• B) $30,775.
• C) $30,500.
• D) $29,375.
• E) $32,160.

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Definitions:

Problem-Focused Coping

A coping strategy where an individual directly tackles a stressful situation to minimize or eliminate its impact.

Emotion-Focused Coping

Coping strategies aimed at reducing or managing the emotional distress associated with a situation.

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The idea that sensory feedback from our facial expressions can affect our mood and even change our emotional state.

Distress

A state of emotional, mental, or physical strain or suffering, often resulting from adverse or demanding circumstances.