John Company Has Two Service Departments,Maintenance and Human Resources If the Direct Method Is Used to Allocate Service Department

question 66

Multiple Choice

John Company has two service departments,Maintenance and Human Resources.John Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while Human Resources costs are allocated based on number of employees.The following information has been gathered for the current year:
$\begin{array}{lllll}&&\text { Human }\\&\text { Maintenance } &\text { Resources } & \text { Mixing } & \text { Finishing }\\\text { Direct costs } & \$ 126,000 & \$ 84,000 & \$ 105,000 & \$ 175,000 \\\text { Square footage } & 800 & 400 & 1,600 & 1,200 \\\text { Number of employees } & 8 & 12 & 24 & 32\end{array}$
If the direct method is used to allocate service department costs,then the total cost of the Mixing Department after allocation would be ________.

• A) $36,000
• B) $105,000
• C) $108,000
• D) $213,000

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Definitions:

Complex stepfamily

A family structure that includes children from previous relationships of both partners, as well as any children they may have together.

Complex stepfamily

A family structure formed when parents remarry or cohabit with new partners, bringing together children from previous relationships, and potentially having new children, creating complex relationships.

Biological children

Offspring to whom parents are genetically related.

Joint stepfamily

A family type consisting of a couple and their children from previous relationships, as well as any children they may have together, living under one roof.