San Juan Minerals (SJM) has two service departments and two operating departments. Operating data for these departments for last year are as follows: Service DepartmentsOperating Departments MaintenanceCafeteriaMiningProcessingDepartmental costs$48,000$45,000$70,000$130,000Machine hours 2,000 1,000 11,000 9,000Number of employees 40 30 400 360 Costs of the Maintenance Department are allocated on the basis of machine hours. Cafeteria costs are allocated on the basis of number of employees. SJM does not distinguish between variable and fixed overhead costs. Assume that SJM uses the step-down method to allocate service department costs, starting with Maintenance. The total overhead allocated from Cafeteria to Processing would be closest to:
A. $23,643
B. $21,279
C. $22,398
D. $21,316
Answer: C
You might also like to view...
What statement suggests that the Johnson & Johnson Tylenol ad stating that "last year hospitals dispensed 10 times as much Tylenol as the next four brands combined" was suspiciously deceptive?
A. It was a simple statement of a valid claim about the product. B. Johnson & Johnson wanted consumers to think that the medical profession and hospitals believed it was the most effective acetaminophen treatment on the market. C. It was an effort to call attention to the practice of selling the drug to hospitals at a deep discount. D. Johnson & Johnson wanted to show its commitment to lowering medical costs to consumers.
Excellent execution of an excellent strategy is
A. a solid indication that managers are maximizing profits and looking out for the best interests of shareholders. B. the best test of managerial excellence and the best recipe for making a company a standout performer. C. the best test of whether a company enjoys sustainable competitive advantage. D. the best evidence that managers have an emerging business model. E. the best test of whether a company is a true industry leader.
If you use too many modifiers or too strong modifiers in your writing, you
A) will have to support your ideas in more than one paragraph. B) must be sure that your sentences have parallel structure. C) could alienate your reader by appearing overconfident. D) may sound insincere because of exaggeration. E) can control paragraph length by using shorter sentences.
Micah signed a check in the lower right-hand corner and Andrew signed on the back. The presumption is that
a. Micah is the issuer. b. Micah is the acceptor. c. Andrew is the drawer. d. Andrew is the maker and Micah is an indorser.