Veneer Company Has Two Service Departments and Two Producing Departments

question 42

Multiple Choice

Veneer Company has two service departments and two producing departments.The number of employees in each department is: $$\begin{array} { | l | r | } \hline \text { Personnel } & 10 \\\hline \text { Cateteria } & 25 \\\hline \text { Producing Department A } & 265 \\\hline \text { Producing Department B } & \underline { 250 } \\\hline & 560 \\\hline\end{array}$$ The department costs of the Personnel Department are allocated on a basis of the number of employees.If these costs are budgeted at $37,125 during a given period,the amount of cost allocated to Department B under the direct method would be:

• A) $0.
• B) $17,187.50.
• C) $16,875.00.
• D) $18,021.84.

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Definitions:

Accumulated Depreciation

The total depreciation of a fixed asset that has been charged to expense since the asset was acquired and put into use.

Office Supplies

Items used in offices for daily operations, including paper, pens, files, and other stationery.

Salaries Payable

A liability account that reflects the amounts owed to employees for services rendered but not yet paid.

Total Assets

The sum of all current and non-current assets owned by a company.