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San Juan Minerals (SJM) Has Two Service Departments and Two

Question 283

Multiple Choice

San Juan Minerals (SJM) has two service departments and two operating departments. Operating data for these departments for last year are as follows: San Juan Minerals (SJM) has two service departments and two operating departments. Operating data for these departments for last year are as follows: Costs of the Maintenance Department are allocated on the basis of machine hours. Cafeteria costs are allocated on the basis of number of employees. SJM does not distinguish between variable and fixed overhead costs.Assuming that SJM allocates service department costs using the direct method, the total cost allocated from Cafeteria to Mining would be closest to: A) $21,687 B) $15,750 C) $23,684 D) $22,500 Costs of the Maintenance Department are allocated on the basis of machine hours. Cafeteria costs are allocated on the basis of number of employees. SJM does not distinguish between variable and fixed overhead costs.Assuming that SJM allocates service department costs using the direct method, the total cost allocated from Cafeteria to Mining would be closest to:


A) $21,687
B) $15,750
C) $23,684
D) $22,500

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