The Managers of Conch, Inc

question 23

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 computer costs allocated to operating department 1 will be:

• A)$47,031
• B)$27,500
• C)$30,584
• D)$22,000

---

Definitions:

Bar Chart

A visual representation of data where each category is represented by a bar, whose length reflects the category's value.

Illustrating Data

The process of visually presenting data, often through charts, graphs, or diagrams, to help explain or understand patterns and relationships.

Pie Chart

A circular statistic graphic, which is divided into slices to illustrate numerical proportion. Each slice represents a category's contribution to the total.

Line Graph

A type of chart used to display information as a series of data points connected by straight line segments, often to show trends over time.