Answer the Following Questions Using the Information Below

question 85

Multiple Choice

Answer the following questions using the information below:
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:

-Using the direct method, what amount of Maintenance Department costs will be allocated to Department B?

• A)$96,000
• B)$128,000
• C)$156,000
• D)$192,000

---

Definitions:

Base Rent

The minimum amount of rent due under a lease agreement, not including costs such as utilities, maintenance, and other operating expenses.

Winding Up Stage

The process of concluding the affairs of a business or partnership, leading to its dissolution.

Dissolution

The formal disbanding of a partnership, corporation, or other business entity. For instance, partnerships can be dissolved by acts of the partners, by operation of law, or by judicial decree.

Partnership Assets

Resources or items of value owned by a partnership that are used in the operation of the business and subject to division among partners according to their agreement.