CMA Study Group

Exam 1 Additional Practice Question

  • 1.  Exam 1 Additional Practice Question

    Posted 18 days ago
    Hi, I am currently studying to hopefully take Part 1 in September and need a bit of help with the following question, the answer is A but there is no explanation.


    A company has two service departments, Human Resources (HR) and Information Technology
    (IT). The HR department costs of $150,000 are allocated on the basis of the number of
    employees. The IT department costs of $200,000 are allocated based on the IT service hours.
    The costs of operating department X and Y are $250,000 and $180,000, respectively. Data on
    budgeted number of employees and IT service hours are shown below.
    Service Department Operating Department

    Under the direct method, what amount of IT department costs will be allocated to Department
    Y?
    a. $85,714.
    b. $83,721.
    c. $80,000.
    d. $52,174.

    TIA

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    Carla Loera
    Student
    Laredo TX
    United States
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  • 2.  RE: Exam 1 Additional Practice Question

    Posted 17 days ago
    Hi Carla. We can't see the "data on budgeted number of employees. . . ." Is there a table missing or something?

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    Brandy Kirkland
    Accountant
    Darby PA
    United States
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