The Managers at Elliot Manufacturing Are Discussing Ways to Allocate

Multiple Choice

The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information: If Elliot Manufacturing uses the direct method of allocating support department costs, the total support costs allocated to the Assembly department would be:

A) $80,000
B) $87,500
C) $120,000
D) $167,500