The costs of the Purchasing department ($140,625) are allocated based on the number of purchase orders. In December, 2,400 purchase orders are issued in support of the following departments: Using the direct method, what will be the cost per purchase order?
A) $58.59
B) $62.50
C) $51.06
D) $52.17
Correct Answer:
Verified
Q2: The cost driver used to allocate costs
Q5: The purchasing department is an example of
Q7: Under the direct method of allocating support
Q9: The step-down method of allocating support activity
Q20: The reciprocal method of allocating support activity
Q22: When using the step-down method what is
Q23: Assume Potter's Manufacturing has a Janitorial Department
Q24: It has been determined that Administrative costs
Q25: For the month of October, the Accounting
Q26: The Peterson Company maintains a gym for
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