The Dopler Manufacturing Company Has Two Production Departments (Assembly and Finishing)

question 62

Multiple Choice

The Dopler Manufacturing Company has two production departments (Assembly and Finishing) and two service departments (Human Resources and Janitorial) . The projected usage of the two service departments is as follows: $$\begin{array} { l c c } & \begin{array} { c } \text { Use of } \\\text { Human Resources }\end{array} & \begin{array} { c } \text { Use of } \\\text { Janitorial }\end{array} \\\hline \text { Human Resources } & \cdots & 5 \% \\\text { Janitorial } & 10 \% & - \\\text { Assembly } & 60 \% & 40 \% \\\text { Finishing } & 30 \% & 55 \%\end{array}$$ The budgeted costs in the service departments are: Human Resources, $90,000 and Janitorial, $50,000.
Using the direct method, the amount of Janitorial Department cost allocated to the Finishing Department is:

• A) $21,053.
• B) $24,843.
• C) $25,000.
• D) $28,947.
• E) $34,157.

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Definitions:

Compounded Quarterly

A method of calculating interest where the interest is added to the principal balance four times a year.

Extinguish

To put an end to something, such as a debt or obligation, by payment or other settlement.

Payment

The act of transferring money or other valuable items in exchange for goods, services, or to fulfill a contractual obligation.

Compounded Semi-annually

Refers to the process where the interest earned on an investment is calculated and added to the principal amount every six months.