LTD Compagy makes two products in 2 departments.

It has two support departments, Accounting and Information Systems. The compagny has decided to allocate Accounting department costs based on the number of employees in each department and Information Systems costs based on the number of computers in each department. Given the information below, using the direct method to allocate support department costs, what will be the cost of Accounting department allocated to operating department of product 1?

(Support Dep'ts) (Operating Departments)

(Accounting) (Info Systems) (Product 1) (Product 2) (Total)

Total department costs $48,000 $72,000 $386,000 $182,000 $688.000 Number of employees 3 4 22 16 45 Number of computers 4 6 3 3 16

A. $50,000 B. $40,000.17 C. $30,000.07 D. $27,789.47