Answer the Following Questions Using the Information Below

question 102

Multiple Choice

Answer the following questions using the information below:
Jake's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, 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 A if the service department with the highest percentage of interdepartmental support service is allocated first? (Round up)

• A)$64,000
• B)$85,333
• C)$114,667
• D)$128,000

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Definitions:

Mating Patterns

The behavioral strategies or practices of a species in relation to reproduction and selection of partners.

Radiator Hypothesis

The radiator hypothesis suggests that human brain expansion during evolution was facilitated by an increase in cranial blood flow, helping to remove heat from the brain.

Blood Flow

The continuous circulation of blood in the cardiovascular system, delivering nutrients and oxygen to all cells and removing carbon dioxide and other waste products.

Cerebral Spinal Fluid

Cerebral spinal fluid is a clear, colorless body fluid found in the brain and spinal cord that acts as a cushion, protecting the central nervous system, and plays a role in the exchange of nutrients and waste.