Sasha Company allocates the estimated $198,000 of its accounting department costs to its production and sales departments
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Question:
Sasha Company allocates the estimated $198,000 of its accounting department costs to its production and sales
departments since the accounting department supports the other two departments particularly with regard to payroll and
accounts payable functions. The costs will be allocated based on the number of employees using the direct method.
Information regarding costs and employees follows:
Department Employees
Accounting 4
Production 32
Sales 17
How much of the accounting department costs will be allocated to the production?
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