Apex Metallurgy, Inc Assuming Use of the Step-Down Method, Which of the Following

question 37

Multiple Choice

Apex Metallurgy, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly) . The company allocates Building Maintenance cost on the basis of square footage and Human Resources cost on the basis of employees. It believes that Building Maintenance provides more service than Human Resources. The square footage and employees in each department follow. $$\begin{array} { l r c } & \begin{array} { c } \text { Square } \\\text { Footage }\end{array} &\text{employees} \\\hline \text { Human Resources } & 4,000 & 10 \\\text { Building Maintenance } & 10,000 & 15 \\\text { Machining } & 15,000 & 40 \\\text { Assembly } & 21,000 & 60\end{array}$$ Assuming use of the step-down method, which of the following choices correctly denotes the number of square feet and employees over which the Building Maintenance cost and Human Resources cost would be allocated (i.e., spread) ? $\begin{array}{ll}\text { Building } & \text { Human } \\\underline{\text { Maintenance }} & \underline{\text { Resources }}\end{array}$
A. $\begin{array}{llcc}36,000 & \quad\quad\quad100 \\\end{array}$

B. $\begin{array}{llcc}40,000& \quad\quad\quad100 \\\end{array}$

C. $\begin{array}{llcc}46,000 &\quad\quad\quad 110\\\end{array}$

D. $\begin{array}{llcc} 50,000 & \quad\quad\quad110 \\\end{array}$

E. $\begin{array}{llcc} \text {None of the other answers are correct. } &\\\end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D
• E) Choice E

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Definitions:

Bystanders

Individuals who are present at an event or situation but do not take part in it, often discussed in the context of emergency or crime scenarios.

Individual Bystander

A person who is present at an event or incident but does not take part or intervene, often discussed in the context of emergency psychology and social psychology.

Personally Intervening

Personally intervening means taking direct action or involving oneself directly in a situation, typically to influence the outcome or to provide assistance.

ATM Machine

An automated teller machine, a banking terminal that allows clients to conduct transactions, such as cash withdrawals, without the need for a human clerk.