Harry Dishman Owns and Operates Harry's Septic Service and Legal

question 63

Multiple Choice

Harry Dishman owns and operates Harry's Septic Service and Legal Advice.Harry's two revenue generating (production) operations are supported by two service departments: Clerical and Janitorial.Costs in the service departments are allocated in the following order using the designated allocation bases: Clerical:
Variable cost: expected number of work orders processed
Fixed cost: long-run average number of work orders processed
Janitorial:
Variable cost: labor hours
Fixed cost: square footage of space occupied
Average and expected activity levels for next month (June) are as follows: Expected costs in the service departments for June are as follows: Under the step method of allocation,how much Clerical service cost should be allocated to the Septic Service operation for June? (Assume Clerical costs are allocated before Janitorial costs and round all calculations to the nearest whole dollar. )

• A)$12,689.
• B)$13,100.
• C)$13,620.
• D)$15,596.

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Definitions:

Customer Orders

Requests or instructions from customers to supply goods or services in specified quantities and at agreed terms.

Mondays

The day of the week that follows Sunday and precedes Tuesday, often considered the beginning of the working week.

Information Sharing

The exchange of data, information, or knowledge between parties to improve understanding, decision-making, or coordination.

Supply Chain Coordination

The management of activities, resources, equipment, and information across the supply chain to ensure efficient and effective fulfillment of customer demand.