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10 Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the
10 Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: Number of Square Feet Employees Janitorial Department 100 Cafeteria Department 10,000 Cutting Department 2,000 Assembly Department 8,000 If the Cafeteria Department incurs costs of $500,000, how much of that cost is allocated to the Assembly Department? Oa. $375,000 Ob $125,000 Oc. $111,000 Od. $91,000
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