The Lots More Store Has a Janitorial Department and a Personnel

question 35

Multiple Choice

The Lots More Store has a Janitorial Department and a Personnel Department that provide services to three Sales Departments. The Janitorial Department cost is allocated based on space and the Personnel Department cost is allocated based on employees. The following information is available.
Using the direct method, calculate the amount of Personnel Department cost allocated to Sales Department #3.

• A) $12 000
• B) $15 000
• C) $12 857
• D) $13 500

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Definitions:

Themed Restaurants

Restaurants designed around a particular theme, concept, or idea to offer unique dining experiences.

Attractiveness

The quality that makes something appealing or desirable.

Production Function

An equation that specifies the output that a firm can produce with various combinations of inputs, reflecting the relationship between input and output quantities.