Bronson, Inc

question 130

Multiple Choice

Bronson, Inc. has two support departments, Personnel and Maintenance, whose costs are to be allocated to the operating department's overhead for budgeting and inventory costing purposes. Projected amounts for the next year follow: Services Provided by
Personnel Maintenance
Direct costs $46,750 $22,500
Services provided to:
Personnel -- 10%
Maintenance 20% --
Cutting 40% 30%
Assembly 40% 60%
If the reciprocal method is used, the total cost of maintenance will be:

• A)$32,500
• B)$22,500
• C)$27,175
• D)$31,850

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Definitions:

Permanent Underclass

A segment of the population that occupies the lowest possible position in a class hierarchy, below the core body of the working class.

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To sustain or provide for oneself, especially at a basic level.

Well Paying Jobs

Positions that offer a salary higher than the average, providing financial security and benefits.

Welfare

Government-provided support programs designed to ensure the basic living standards of citizens, including healthcare, food assistance, and unemployment benefits.