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

question 40

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

• A)$48,000
• B)$48,706
• C)$5,000
• D)$12,000
• E)$14,118

---

Definitions:

Decision Making

The act of choosing between two or more courses of action or solutions to a problem in various contexts, including personal, professional, and societal.

Susceptible

Easily influenced or harmed by something; having a vulnerability or tendency to be affected by a particular condition or influence.

Ethical Dilemmas

Situations in which a person must choose between actions that are evaluated as morally right or wrong.

Ethical Principles

Fundamental beliefs or values that guide behavior and decision-making based on notions of right and wrong.