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Assume a company provided the following information: Departmental costs Number of employees Square feet of space occupied Service Departments Cafeteria Janitorial $200,000 $140,000 10 20
Assume a company provided the following information: Departmental costs Number of employees Square feet of space occupied Service Departments Cafeteria Janitorial $200,000 $140,000 10 20 3,000 2,000 Operating Departments Lab Tech $2,320,000 $ $950,000 40 60 11,000 9,000 If the company (1) uses the direct method to allocate service department costs to operating departments, (2) allocates Cafeteria costs based on the number of employees, and (3) allocates Janitorial costs based on square feet of space of occupied, then the cost allocated from the Janitorial Department to the Tech Department is closest to: Multiple Choice $63,000. O O $54.782 $50,400 $57.273. O
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