1. Which of the following is not a primary reason for allocating service department costs to user departments? (a) (b) (c) (d) To monitor the usage of services by other departments within the organization To encourage service departments to provide the best possible service regardless of cost. To encourage user departments to be conscious of the cost services used by them. To satisfy external reporting requirements under generally accepted accounting principles. 2. Cost pools are used with: Plantwide Rates Department Rates Yes No Yes No Yes Yes No No Use the following information to answer Questions 3 through 5 Moncton, Inc. has 3 plants that it operates in various geographical locations. Each plant produces identical products but uses different manufacturing processes. Each plant sells to different customers, setting its own prices. The costs associated with general headquarters operations total $500,000. The company is considering several allocation bases to allocate these costs to the various plants. Information concerning these allocation bases is provided below