Answer the Following Questions Using the Information Below

question 97

Multiple Choice

Answer the following questions using the information below:
Murray River Cruises Company has two service departments,Maintenance and Personnel.Maintenance Department costs of $160 000 are allocated on the basis of budgeted maintenance-hours.Personnel Department costs of $40 000 are allocated based on the number of employees.The costs of operating departments A and B are $80 000 and $120 000,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 B if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up. )

• A)$57 334
• B)$51 200
• C)$64 000
• D)$32 000

---

Definitions:

Cross-Cultural Values

Refer to the differing norms, traditions, and social expectations among various cultures, influencing behaviors and interactions within a global or multicultural context.

Differentiation

The process by which an organization distinguishes itself from competitors by developing a unique product or offering a unique service.

Common Goal

Denotes a shared objective or target that a group or team aims to achieve collectively.

Conflict

A disagreement or clash resulting from differing interests, values, or needs in a relationship, group, or organization.