Veneer Company has two service departments and two producing
departments. The number of employees in each department
is:
| Personnel | 10 |
| Cafeteria | 25 |
| Producing Department A | 265 |
| Producing Department B | 250 |
| 550 | |
The department costs of the Personnel Department are allocated on a
basis of the number of employees. If these costs are budgeted at
$37,125 during a given period, the amount of cost allocated to
Department B under the direct method would be:
$0.
$18,021.84.
$17,187.50.
$16,875.00.
|
Amount of cost allocated to dept B = 37,125 * 250/(265+250) = 37,125 * 250/515 = 18,021.84 Option B is the answer |
|
Veneer Company has two service departments and two producing departments. The number of employees in each...
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