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

question 70

Multiple Choice

Bender Company has two service departments,Maintenance and Human Resources.Bender 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:
$\begin{array}{llll}&&\text { Human }\\&\text { Maintenlance }&\text { Resources } & \text { Mixing } & \text { Finishing } \\\text { Direct costs }& \$ 50,400 & \$ 33,600 & \$ 42,000 & \$ 70,000 \\\text { Square footage }&1,600 & 800 & 3,200 & 2,400 \\\text { Number of employees }&16 & 24 & 48 & 64\end{array}$
If the direct method is used to allocate service department costs,then the total cost of the Maintenance Department after the Human Resources Department cost allocation would be ________.

• A) $33,600
• B) $50,400
• C) $54,600
• D) $70,000

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Definitions:

Pollutants

Substances that contaminate the environment, often resulting from industrial, agricultural, or other human activities, and can harm human health and natural ecosystems.

Declining Benefits

A situation where the additional satisfaction or value derived from using or consuming more of a product decreases.

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An ideal state where everything meets the highest standards of accuracy or completeness.

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A condition where resources are allocated in a way that maximizes the production of goods and services without wasting any resources.