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12) Koehl Corporation uses the direct method to allocate service department costs to 12) operating departments. The company h
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ANSWER :(B) $ 403,990

Administrative costs are allocated on basis of employee hours of wholesaling department

=19440*14000/36000

=$ 7560

Facilities costs are allocated on basis of space occupied by wholesaling department

=71340*2000/41000

=$ 3480

Total wholesaling department cost after allocation of service departments = 392950+7560+3480

= $ 403,990

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