The Managers of Conch, Inc

question 133

Multiple Choice

The managers of Conch, Inc. want to determine the most accurate allocation of support department costs to operating departments. To make this allocation, the accounting department has collected the following data: Services Provided By
Computer Cafeteria
Direct costs $55,000 $35,000
Service provided to:
Computer department ---- 15%
Cafeteria 10% ----
Operating department 1 50% 40%
Operating department 2 40% 45%
If the reciprocal method is used, the total costs allocated to the operating departments will be:

• A)$61,168
• B)$79,250
• C)$41,117
• D)$90,000

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Definitions:

Personality Types

Classifications of different patterns of behavior, thought, and emotional response that characterize an individual's personal style of interacting with the world.

Grade-Point Average

A numerical calculation that represents the average value of the accumulated final grades earned in courses over time.

Conscientiousness

A personal attribute noted for systematic behavior, reliability, and a deep dedication to responsibilities.