Use the following information for the next 3 questions.
PIR Corporation has 2 support departments and 2 operating departments. Number of employees is used as an allocation base for personnel support costs, and square feet are used for janitorial support costs. A breakdown of their costs, along with other operating information, is shown below for a recent accounting period:
-If PIR uses single-rate allocation and the direct method, the total cost (including support department costs) for Product Assembly will be
A) $14,000
B) $28,000
C) $30,400
D) None of the above

Question

Use the following information for the next 3 questions.
PIR Corporation has 2 support departments and 2 operating departments. Number of employees is used as an allocation base for personnel support costs, and square feet are used for janitorial support costs. A breakdown of their costs, along with other operating information, is shown below for a recent accounting period: 
-If PIR uses single-rate allocation and the direct method, the total cost (including support department costs) for Product Assembly will be
A) $14,000 
B) $28,000 
C) $30,400 
D) None of the above

Quizplus · Accepted Answer

The single-rate allocation method allocates support department costs based on a predetermined rate. Given the context, the total cost for Product Assembly, including support department costs, is calculated to be $30,400.

Use the Following Information for the Next 3 Questions