The Accountant for Milton, Inc

question 41

Multiple Choice

The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: Support Departments Operating Departments
Maintenance Cafeteria Cutting Packaging
Direct costs $50,000 $45,000 $275,000 $300,000
Number of employees 15 10 150 250
Square metres 1,500 2,000 3,500 4,000
If the direct method is used, the total cost (including allocations) for the packaging department will be:

• A)$26,667
• B)$355,250
• C)$54,792
• D)$354,792

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Definitions:

Distracted

The state of being unable to concentrate or focus attention due to external stimuli or internal thoughts.

Anxious

Experiencing worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.

Culturally Sensitive

An approach that respects and acknowledges the differences in cultures and adjusts methods and practices to be inclusive and respectful.

Hindu

Relating to Hinduism, a major world religion originating on the Indian subcontinent and comprising several and varied systems of philosophy, belief, and ritual.