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JKL Company has two service departments, IT and HR, and two production departments, Assembly and Packaging. The following table shows the costs incurred in each
JKL Company has two service departments, IT and HR, and two production departments, Assembly and Packaging. The following table shows the costs incurred in each department:
Department IT ($) HR ($) Allocation to Production Departments ($) IT - 10,000 20,000 HR 12,000 - 25,000 Assembly 20,000 30,000 - Packaging 15,000 20,000 - Allocate the service department costs to the production departments using the direct method.
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