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 metres 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 allocation rate for personnel will be:
A) $280 per employee
B) $215 per employee
C) $187 per employee
D) None of the above

Question

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 metres 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 allocation rate for personnel will be:
A) $280 per employee 
B) $215 per employee 
C) $187 per employee 
D) None of the above

Quizplus · Accepted Answer

The Answer of 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 metres 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 allocation rate for personnel will be:
A) $280 per employee 
B) $215 per employee 
C) $187 per employee 
D) None of the above

PIR Corporation Has 2 Support Departments and 2 Operating Departments