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Pompeo Inc. has two support departments (IT and administration) and two operating departments (assembly and finishing). The following information has been provided: Overhead costs -
Pompeo Inc. has two support departments (IT and administration) and two operating departments (assembly and finishing). The following information has been provided:
Overhead costs - IT: $75,000
IT services provided to: Administration - 15%; Assembly - 55%; Finishing - 30%
Overhead costs - Administration: $55,000
Administration services provided to: IT - 25%; Assembly - 35%; Finishing - 40%
If the direct method is used, how much IT cost would be allocated to the finishing department?
Question 8 options:
| $25,667 |
| $26,471 |
| $11,250 |
| $41,250 |
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