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The DFS Company separates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $12,000 and Support Department
The DFS Company separates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $12,000 and Support Department 2 had budgeted costs of $18,000 during the month of October. DFS allocates the costs of each support department based on service hours. The table here shows how many service hours each support department provided to the two operating departments, to the other support department, and to itself. Support Support Operating Operating Total Service Hours 1 2 1 2 Provided Support 900 720 540 540 2,700 Support 100 200 300 600 1,200 2 If DFS uses the reciprocal method to allocate support department costs, how much will be allocated to Operating Department 1 and Operating Department 2, respectively, in October? A $11,200 and $18,800 B $12,300 and $17,700 C$11,438 and $18,563 D $12,000 and $18,000 A B I E
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