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Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of Supporting services (maintenance and personnel) to 2 locations (Riyadh and Jeddah).
Spaghetti is a family-owned restaurant in KSA. The corporate office provides 2 kinds of Supporting services (maintenance and personnel) to 2 locations (Riyadh and Jeddah). Maintenance costs are allocated based on square feet, and personnel costs are allocated based on number of employees. The following data is provided. Allocation basis Maintenance Personnel Riyadh Jeddah Total Square feet 4000 6000 10000 Employees 6 8 14 Individual Cost 25000 14000 15,000 30,000 84,000 Maintenance (25000) 25,000 Personnel (14000) 14,000 Total Cost 84,000 Using the above data, According to the direct method what will be the Personnel Cost for location Riyadh and Jeddah? a. Riyadh Jeddah Total 6000 8000 14,000 O b. Riyadh Jeddah Total 7000 7000 14,000 c. Riyadh Jeddah Total 9000 5000 14,000 O d. Riyadh Jeddah Total 2000 12000 14,000 Using the above data, According to the direct method what will be the Maintenance Cost for location Riyadh and Jeddah? a. Riyadh Jeddah Total 13000 12000 25,000 O b. Riyadh Jeddah Total 10000 15000 25,000 O c. Riyadh Jeddah Total 9000 16000 25,000 O d. Riyadh Jeddah Total 8000 17000 25,000
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