Jamison Company Has Two Service Departments and Two Producing Departments

question 143

Multiple Choice

Jamison Company has two service departments and two producing departments.Square footage of space occupied by each department follows: $$\begin{array} { | l | r | } \hline \text { Custodial services } & 1,000 \mathrm { ft } \\\hline \text { General administration } & 3,000 \mathrm { ft } \\\hline \text { Producing department A } & 8,000 \mathrm { ft } \\\hline \text { Producing department B } & \underline{8,000 \mathrm { ft }} \\\hline & 20,000 \mathrm { ft } \\\hline\end{array}$$ The department costs of Custodial Services are allocated on a basis of square footage of space.If Custodial Services costs are budgeted at $38,000,the amount of cost allocated to General Administration under the direct method would be:

• A) $0.
• B) $7,125.
• C) $6,000.
• D) $5,700.

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Definitions:

Negotiation Session

A designated period during which parties come together to discuss and reach agreements on specific matters.

Distrust

A feeling of doubt or skepticism towards someone or something's reliability or trustworthiness.

Power-oriented Linguistic Style

A way of communicating that emphasizes authority, control, and dominance, often used by those in positions of power.

Passive Voice

A grammatical voice where the subject of the sentence is acted upon by the verb, often used to create a sense of mystery or to depersonalize the subject.