Visions, Inc Over How Many Square Feet Would the Building Maintenance Cost

question 75

Multiple Choice

Visions, 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 believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows. $$\begin{array} { l r } \text { Human Resources } & 3,500 \\\text { Building Maintenance } & 8,700 \\\text { Machining } & 9,900 \\\text { Assembly } & 15,000\end{array}$$ Over how many square feet would the Building Maintenance cost be allocated (i.e., spread) with the direct method and the step-down method? $\begin{array}{llcc} \quad \text { Direct } & \text { Step-Down } \\\quad \underline{\text {Method }}& \underline{ \text { Method }}\end{array}$
A. $\begin{array}{llcc} 24,900&\quad 28,400 \\\end{array}$

B. $\begin{array}{llcc}24,900& \quad37,100 \\\end{array}$


C. $\begin{array}{llcc} 28,400& \quad24,900 \\\end{array}$

D. $\begin{array}{llcc}37,100 &\quad 24,900 \\\end{array}$

E. $\begin{array}{llcc} \text {Some other combination of figures not listed above. } & \\\end{array}$

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

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Definitions:

Poorer Quality

Describes a level of quality that is below average or expectation.

Individual Project

A task or research activity conducted by a single person, often to explore a specific topic or solve a problem independently.

Groupthink

The impaired group decision making that occurs when making the right decision is less important than maintaining group harmony.

Impartial Leader

A leader who treats all group members fairly and equally, without bias or favoritism, often resulting in more objective and fair decision-making processes.