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Ace has two service (A and B) and two production departments (C and D). Departments A's cost of $140,000 are allocated to production based on
Ace has two service (A and B) and two production departments (C and D). Departments A's cost of $140,000 are allocated to production based on number of employees. Employees are A, 2; B, 2; C,4; and D,8. Using a direct approach:
D will absorb $93,333 of A's cost.
D will absorb $70,000 of A's cost.
D will absorb $80,000 of A's cost.
None of these
D will absorb $140,000 of A's cost.
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