Question
Mandy's company allocates the net cost of the company human resources department to production departments using the direct method based on the number of employees
Mandy's company allocates the net cost of the company human resources department to production departments using the direct method based on the number of employees in each department. The four production departments in the company have the following number of employees: molding, 25; polishing, 35; engraving, 30; and packaging, 10. The human resources' net costs total $120,750. There are 5 employees in the human resources. When the human resources department costs are allocated, what is the amount per employee that will be allocated to each of the production departments?
(I think bc it's the direct method we don't include the 5 employees in our allocation to production. I am completely sure what the question is asking i think it's (1/100) x 120,750 but im not really sure)
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