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Teta Company has four cost centers. Here below you can find selected information: Information Technology and Internal Logistic are two service cost centers. The company
Teta Company has four cost centers. Here below you can find selected information: Information Technology and Internal Logistic are two service cost centers. The company adopts the Direct Method to reallocate service cost centers. Information Technology is the first one to be reallocated. Compute the total costs of Production Center (1) and (2) after both the reallocations (a) Production (1) 712,500; Production (2) 1,362,000 (b) Production (1) 312,500; Production (2) 362,500 (c) Production (1) 350,000; Production (2) 400,000 (d) Production (1) 750,000; Production (2) 1,400,000
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