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City Company Has Two Service Departments, Maintenance and Personnel, as Well

Question 57

Multiple Choice

City Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year:
City Company has two service departments, Maintenance and Personnel, as well as two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year: -If the direct method is used to allocate costs, the total cost of the Finishing Department after allocation would be A) $7,714. B) $6,858. C) $39,571. D) $25,000.
-If the direct method is used to allocate costs, the total cost of the Finishing Department after allocation would be


A) $7,714.
B) $6,858.
C) $39,571.
D) $25,000.

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