(Direct method) Clang Corporation allocates its service department costs to its production departments using the direct method. Information for May 1997 follows:

a. What amount of personnel and maintenance costs should be assigned to Fabricating for May?

b. What amount of personnel and maintenance costs should be assigned to Finishing for May?LO1

Transcribed Image Text:

PERSONNEL MAINTENANCE Service department costs $68,000 $50,000 Services provided to other departments Personnel 10% Maintenance 15% Fabricating Finishing 45% 60% 40% 30%