Suppose the Company Uses the Direct Method of Allocation

question 34

Multiple Choice

Suppose the company uses the direct method of allocation. The amount of Personnel Department cost that would be allocated to Operating Department 2 would be:

• A)$0
• B)$294,000
• C)$270,000
• D)$264,600

---

Definitions:

Thyroid Hormone

A hormone produced by the thyroid gland that regulates metabolism, energy generation, and neurological growth.

Metabolism

The set of life-sustaining chemical reactions in organisms, crucial for converting food to energy, constructing cellular components, and managing waste materials.

Calcium Levels

The concentration of calcium ions (Ca2+) in the body, critical for various physiological processes, including bone formation, muscle function, and signal transduction.

Glucagon

A hormone produced by the pancreas that works to raise blood glucose levels by stimulating the breakdown of glycogen in the liver.