Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
ZanaTech has an on-site cafeteria in which it provides free meals for employees. The company allocates the cost of the cafeteria to production departments using
ZanaTech has an on-site cafeteria in which it provides free meals for employees. The company allocates the cost of the cafeteria to production departments using the direct method based on the number of employees in each department. The four production departments in the company have the following number of employees: molding, 15; polishing, 20; engraving, 10; and packaging, 15. There are 20 employees in the cafeteria. The cafeteria's costs are budgeted at $147,000 for the year. The actual cafeteria costs totaled $150,000 for the year. What is the total amount of the cafeteria's costs that will be allocated to the production departments?
A. | $108,000 |
B. | $150,000 |
C. | None of these answer choices are correct. |
D. | $147,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started