The Production Section of a Firm Is Serviced by Personnel

question 22

Multiple Choice

The production section of a firm is serviced by personnel and computing as follows:
Personnel costs are allocated on the number of employees and computing costs on service hours. Overhead rates are based on labour hours. If the reciprocal services method is used to allocate support department costs, the total support department costs allocated to the Assembly Department (rounded) would be:

• A) $55 927
• B) $52 800
• C) $53 800
• D) $56 072

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Definitions:

Basic Research

Investigative study aimed at gaining a comprehensive understanding of the fundamental aspects of phenomena without immediate commercial goals.

Discrimination

The offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics.

Birth Rate

The number of live births per thousand of the population per year.

Domestic Investment

The total spending on capital within a country, including spending on new buildings, machinery, and inventory changes.