Current Attempt in Progress

Jorgenson, Inc. has $2$ departments$-$sorting and molding. The payroll and IT departments provide services for the production

departments and all other service departments. Payroll is allocated based on number of employees and IT is allocated based on

number of computer stations. Jorgenson provided the following information concerning its departments for January:

How much service cost will be allocated to the sorting department using the direct method?

$$68,800$

$$40,000$

$$24,000$

$$64,000$