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Question 1 (2 points) Ken's Tire Company has two support departments, Purchasing and Shipping. The Shipping department costs of $80,000 are allocated based on the
Question 1 (2 points) Ken's Tire Company has two support departments, Purchasing and Shipping. The Shipping department costs of $80,000 are allocated based on the number of orders. The Purchasing department costs of $20,000 are allocated based on the number of employees. Costs of Production Department A are $40,000, and costs of Production Department B are $60,000. Data for the month of October follows: Production Production Purchasing Shipping Dept. A Dept. B Number of 1200 240 160 orders Number of 10 40 120 employees How much of the cost of Purchasing will be allocated to Production Department B using the direct method? $15,000 11: $8,000 $5,000 $4.706
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