Rust Company Has Two Support Departments (S1 and S2) and Two

question 93

Multiple Choice

Rust Company has two support departments (S1 and S2) and two producing departments (X and Y) .Department S1 serves Departments S2, X, and Y in the following percentages, respectively: 10%, 35%, 55%.Department S2 serves Departments S1, X, and Y in the following percentages, respectively: 6%, 50%, and 44%.Direct department costs for S1, S2, X, and Y are $15,000, $8,000, $105,000, and $97,500, respectively.
- What are the total costs to be allocated from Department S1?

• A) $15,000
• B) $800
• C) $9,500
• D) $15,573

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Definitions:

Cornea

The clear, protective outer layer of the eye that helps to focus incoming light.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to a high concentration of cones.

Purity

The state or quality of being free from contaminants, immorality, or imperfections; often associated with morals, substances, or intentions.

Saturation

In color perception, the intensity or purity of a color, representing how much a hue is free of white light.