Answer the Following Questions Using the Information Below

question 102

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 step-down method, what amount of Maintenance Department cost will be allocated to Department A if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

• A)$64,000
• B)$85,333
• C)$114,667
• D)$128,000

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Definitions:

Life Cycle

The series of changes an organism goes through from its beginning as an independent life form to its death, including development, maturity, and eventual decline.

Social Change

The transformation over time in the societal structures and cultural patterns through collective action or policies.

Revolutionary

Pertaining to or involved in bringing about a radical change in society or an existing system, often through dramatic means.

Reformist

An advocate for gradual and systematic changes within a system to improve it, without overturning the entire system.