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

question 5

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 A using the step-down method if the Personnel Department is allocated first?

• A) $8,000
• B) $4,706
• C) $5,000
• D) $12,000
• E) $14,118

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Definitions:

Analytical Intelligence

Part of Sternberg's Triarchic Theory of Intelligence, it involves the ability to analyze, evaluate, judge, compare, and contrast.

Creative Intelligence

The capacity to solve novel problems and come up with original and appropriate solutions.

Experiential Intelligence

The ability to use one's own experiences effectively for learning and problem-solving, often related to practical intelligence.

Componential Intelligence

One aspect of triarchic theory of intelligence, focusing on analytical abilities such as problem-solving and logical reasoning.