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

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Definitions:

Higher Employee Morale

A state of enthusiasm and dedication that employees feel towards their work and workplace, often leading to increased productivity and job satisfaction.

Managers Overloaded

A situation where managers have more work responsibilities or tasks than they can effectively handle.

Bureaucracy

An organizational system with strict rules, procedures, and hierarchy, intended to manage and regulate operations.

Formalized Rules

Explicitly stated regulations or guidelines designed to structure certain behaviors or operations within an organization.