QuesLUIZ 14.pollic) The next two questions are based on the following information: Alden Co. makes high quality Oxford shoes and Chelsea boots. It has two service departments: Marketing and Customer Marketing department costs of $300,000 are allocated on the basis of budgeted campaign hours. Sales department costs of $120,000 are allocated on the basis of budgeted sales volume. The costs of operating departments Oxford and Chelsea are $250,000 and $125,000, respectively. Data on budgeted machine hours and budgeted sales volume are as follows: - Support Departments Production Departments Marketing Customer Oxford Chelsea Budgeted Costs $300,000 $120,000 $250,000 $125,000 Budgeted Campaign Hours NA 500 hrs 1500 hrs 1000 hrs Budgeted Sales Volume 20 pairs NA 4 000 pairs 1000 pairs Using the direct method, how much service cost of Marketing should be allocated to the Chelsea department? O$ 120,000 O $ 180,000 OS 100,000 OS 60,000 Previous Page Next Page