The various methods for allocating support departments have pros and cons. Which of the following is an important reason not to use the direct method for allocating support department costs to production departments? a.It is not compatible with computerized accounting systems. b.It is the most expensive method. c.It is the least accurate method. d.It does not incorporate overhead costs.

Using the direct method, Thomas Company allocates Maintenance Department costs based on square footage serviced, and it services the Cutting and Assembly departments. It allocates Cafeteria Department costs based on the number of employees served in the Cutting and Assembly departments. It has the following information about its two service departments and two production departments, Cutting and Assembly:

	Square Feet	Number of Employees
Maintenance Department	500	20
Cafeteria Department	3,000	10
Cutting Department	1,000	60
Assembly Department	9,000	20

What is the percentage (proportional) usage of the Maintenance Department by the Cutting Department?

a.7%

b.25%

c.10%

d.28%