Chambers, Inc

Multiple Choice

Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B) . The following data are given: Services Provided By
Utilities Computer
Direct costs $55,000 $75,000
Services provided to:
Utilities ---- 15%
Computer 25% ----
Operating department A 35% 55%
Operating department B 40% 30%
If the direct method is used, how much total cost would be allocated to operating department A?

A) $60,500
B) $55,804
C) $58,500
D) $74,196