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The managers of Yoyodyne Propulsion Systems are discussing ways to allocate the cost of support departments such as Quality concor and Maintenance to the Machining
The managers of Yoyodyne Propulsion Systems are discussing ways to allocate the cost of support departments such as Quality concor and Maintenance to the Machining and Assembly production departments. To aid them in this discussion, the controller has provided the following information: Quality Control Maintenance Machining Assembly Total $350,000 $200,000 $400,000 $300,000 $1,250,000 50,000 50,000 25,000 25,000 Budgeted overhead costs before allocation Budgeted Machine-hours Budgeted Direct manufacturing labor- hours Budgeted units of service: - Quality Control - Maintenance 7,000 21,000 18,000 7,000 12,000 35,000 40,000 10,000 Question 22: If Yoyodyne uses the direct method of allocating support department costs, the total support costs allocated to the Assembly Department would be closest to O a $87.500 Ob $120,000 OC 5167 500 Od 5467 500
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