Kraft, Inc

question 133

Multiple Choice

Kraft, Inc., has two producing departments.Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows:
Normal support department usage is 8,000 hours each for Department X and Department Y.
-Assuming the direct method is used and the purpose is performance evaluation, support department costs allocated to Department X are

• A) $45,000.
• B) $40,000.
• C) $36,400.
• D) $36,000.

---

Definitions:

Days

Units of time equal to 24 hours, used as a measurement of the duration of events or the interval between them.

Term Deposit

A bank deposit with a fixed term and usually a higher interest rate than a savings account, requiring funds to remain deposited for a specific period.

Maturity

The final payment date of a loan or financial instrument at which point the principal (and all remaining interest) is due to be paid.

Invested

The act of allocating resources, usually money, into something to earn a return or profit.