Steven Parker owns and operates Steven's Septic Service and Legal Advice. Steven's two revenue generating (production) operations are supported by two service departments: Clerical and Janitorial. Costs in the service departments are allocated in the following order using the designated allocation bases:
Clerical:
Variable cost: expected number of work orders processed
Fixed cost: long-run average number of work orders processed
Janitorial:
Variable cost: labor hours
Fixed cost: square footage of space occupied
Average and expected activity levels for next month (June) are as follows:
Expected costs in the service departments for June are as follows:
-
Under the direct method of allocation, what is the total amount of service cost allocated to the Legal Advice operation for June? (Round all calculations to the nearest whole dollar.)
A) $6,231.
B) $7,720.
C) $8,640.
D) $9,330.
Correct Answer:
Verified
Q49: The following information relates to Osceola
Q50: The following information relates to Osceola
Q51: Cordner Corporation has two production departments,
Q52: Because this allocation method recognizes that service
Q53: The Maryville Construction Company occupies 85,000 square
Q55: The Maryville Construction Company occupies 85,000 square
Q56: Steven Parker owns and operates Steven's
Q57: Cordner Corporation has two production departments,
Q58: Which of the following is a weakness
Q59: Cordner Corporation has two production departments,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents