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The BVC Company seperates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $90,000 and Support
The BVC Company seperates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $90,000 and Support Department 2 had budgeted cost of $180,000 during the month of April. BVC allocates the costs of each support department based on service hours. The table presented here shows how many service hours each support department provided to the two operating departments, to the other support department, and to itself. Support 1 Support 2 Operating 1 Operating 2 Total Service Hours Provided Support 1 20 25 27 48 Support 2 1,000 400 3,000 2,000 120 6,400 If BVC uses the direct method to allocate support department costs, how much will be allocated to Operating Department 1 and Operating Department 2, respectively, in April? O $140,400 and $129,600 O $139,461 and $130,539 O $161,042 and $108,958 O $145,800 and $124,200
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