Nolin Corporation Uses the Direct Method to Allocate Service Department

question 18

Multiple Choice

Nolin Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Administrative and Facilities, and two operating departments, Assembly and Wholesaling.
Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied. The total Wholesaling Department cost after the allocations of service department costs is closest to:

• A) $418,700
• B) $406,160
• C) $416,273
• D) $418,390

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Definitions:

Interstitial Fluid

Interstitial fluid is the liquid found in the spaces between cells, serving as the immediate microenvironment that allows for movement of ions, proteins, and nutrients.

Lymphatic System

A network of tissues and organs, including lymph nodes, vessels, and fluid (lymph), that helps rid the body of toxins and waste, facilitating immune responses.

Atherosclerosis

A cardiovascular disease characterized by the buildup of fatty deposits, or plaques, on the inner walls of arteries, leading to reduced blood flow.

LDLs

LDLs (Low-Density Lipoproteins) are particles in the blood that transport cholesterol to cells, often referred to as "bad" cholesterol due to their association with increased risk of heart disease.