Multiple Choice
Harry Dishman owns and operates Harry's Septic Service and Legal Advice.Harry's two revenue generating (production) operations are supported by two service departments: Clerical and Janitorial.Costs in the service departments are allocated in the following order using the designated allocation bases: Clerical:
Variable cost: expected number of work orders processed
Fixed cost: long-run average number of work orders processed
Janitorial:
Variable cost: labor hours
Fixed cost: square footage of space occupied
Average and expected activity levels for next month (June) are as follows: Expected costs in the service departments for June are as follows:
Under the direct method of allocation,what is the total amount of service cost allocated to the Legal Advice operation for June? (Round all calculations to the nearest whole dollar. )
A) $6,231.
B) $7,720.
C) $8,640.
D) $9,330.
Correct Answer:

Verified
Correct Answer:
Verified
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