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

question 72

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 support departments 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)$43,660
• B)$21,333
• C)$53,412
• D)$46,588
• E)$ 56,313

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Definitions:

Redundancy

The inclusion of extra components that are not strictly necessary to functioning, in case of failure in other components.

Rapport

A positive, trusting relationship between individuals, characterized by mutual understanding, respect, and communication.

Functional Curriculum

A curriculum designed to teach students skills that apply directly to real-world situations and daily living.

Independent Living

The ability to live by oneself, managing everyday tasks and responsibilities without assistance.