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

---

Definitions:

Obsessive-Compulsive Disorder

A mental disorder where people feel the need to check things repeatedly, perform certain routines repeatedly, or have certain thoughts repeatedly.

Impulsively

Acting without forethought or consideration of the consequences.

Autism Spectrum Disorder

A range of developmental disorders characterized by challenges with social skills, repetitive behaviors, speech, and nonverbal communication.

Diagnosis Increase

Refers to the rise in the number of cases identified or diagnosed, which may be due to better awareness, improved diagnostic methods, or an actual increase in incidence.