Homework Answers
Answer
- Correct Answer = Option ‘B’ $ 720,000 will be allocated to Machining
- Working:
>Cost to be allocated = $ 1800000
>Total no of employees to be considered for direct method allocation = 200 (machining) + 300 (assembly) = 500
>Overhead cost allocated to Machining = $ 1800000 x 200 / 500
= $ 720,000 Answer
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