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Alleluia Company Has Two Service Departments,Maintenance and Personnel

Question 51

Multiple Choice

Alleluia Company has two service departments,Maintenance and Personnel.Alleluia Company also has 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: Alleluia Company has two service departments,Maintenance and Personnel.Alleluia Company also has 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 service department costs,then the cost allocated from the Maintenance Department to the Mixing Department is ________. A) $20,160 B) $25,200 C) $28,800 D) $50,400 If the direct method is used to allocate service department costs,then the cost allocated from the Maintenance Department to the Mixing Department is ________.


A) $20,160
B) $25,200
C) $28,800
D) $50,400

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