Andover,, Inc

question 51

Multiple Choice

Andover,, Inc., has two producing departments. Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows:
Support department hours used:
Support department costs:
Normal support department usage is 8,000 hours each for Department L and Department M. Assuming the direct method is used and the purpose is product costing, support department costs allocated to Department L are

• A) $30,000.
• B) $20,400.
• C) $24,800.
• D) $20,000.

Recognize the role of decentralization in organizational control and operations.

Understand the concept of controllable margin and its use in profit center evaluations.

Distinguish between cost centers and profit centers and their evaluative metrics.

Identify and differentiate between variable, fixed, and controllable costs.

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Definitions:

Fixed Socialization

The process through which individuals learn and adapt to the norms and values of a specific group or society, often viewed as stable and unchanging.

Assigned Mentor

A person who is deliberately chosen to provide guidance, knowledge, and support to another individual, often in a professional or academic context.

Psychosocial Functions

The roles that social interactions and relationships play in influencing an individual's psychological health and development.

Career Functions

The roles and activities that contribute to an individual's career development and progression within a professional context.