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

question 142

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:

-How much of the cost of the Maintenance Department is allocated to Department B using the direct method?

• A)$16,000
• B)$12,800
• C)$32,000
• D)$24,000
• E)$60,000

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Definitions:

Capital

Capital refers to financial assets or physical resources that are used in the production of goods and services, including machinery, buildings, or money invested.

Workforce

The group of people who are engaged in or available for work, either in a country or a firm.

Economic Efficiency

A condition in which all resources are allocated in a way that maximizes the total benefit to society or minimizes waste.

Voice Mechanism

A means by which individuals or groups can express opinions, feedback, or concerns, often in the context of organizational decision-making or governance.