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Question 2 (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 2 (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 200 240 160 orders Number of 10 40 120 employees How much of the cost of Shipping will be allocated to Production Department B using the direct method? $32,000 $16,000 $60,000 $21,333
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