Use the Information Below to Answer the Following Question(s)

question 62

Multiple Choice

Use the information below to answer the following question(s) .
Joe's Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $20,000 are allocated based on the number of employees. Costs of Departments A and B are $40,000 and $60,000, respectively.
Data on standard service hours and number of employees are as follows:

-What is the cost of the Maintenance Department allocated to Department B using the step-down method if the support department with the highest percentage of interdepartmental service to the other support department is allocated first?

• A) $16,000
• B) $21,333
• C) $12,800
• D) $32,471
• E) $48,000

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Definitions:

Organizational Behavior

Examining how humans behave within organizations, how they interact with these organizations, and the analysis of the organizations themselves.

Internal Processes

The operations or activities that occur within an organization or system which are crucial for its functioning.

Effectiveness

The degree to which objectives are achieved and desired outcomes are realized, often used as a metric for success in various contexts.

Seven Key Competencies

A set of crucial abilities or skills deemed essential for effective performance in a job or activity.