Castle Company Has Two Service Departments and Two Producing Departments

question 90

Multiple Choice

Castle Company has two service departments and two producing departments.The number of employees in each department is: 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:

APR Interest

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, which includes any fees or additional costs associated with the transaction.

Received Monthly

Regular payments or incomes that are received every month, often related to salaries, benefits, or recurring revenue streams.

Received Quarterly

Pertaining to events or payments that occur once every three months.

Thirty Year Mortgage

A long-term mortgage loan typically repaid over a period of 30 years, with fixed or variable interest rates.