1.Using the direct method for service cost allocation

2.How do youdetermine company dollar amount of cafeteria costs that are absorbed by 1 Maintenance Service Department 2. Printing Department 3. Binding Department

3. When a company has two service department (cafeteria service & Maintenance services). a company has two production departments (Printing & binding department.) Cafeteria Service has costs of $120,000 and allocated to production departments based on their number of employees

4. Employees are Cafeteria services 4, Maintenance services 4, Printing department 2, Binding department 4.