Income from operations for Division K is $220,000, and income from operations before service department charges is $975,000. Therefore:
A) total operating expenses are $755,000
B) total manufacturing expenses are $755,000
C) direct materials, direct labor, and factory overhead total $755,000
D) total service department charges are $755,000

Question

Quizplus · Accepted Answer

The income from operations before service department charges ($975,000) minus the income from operations for Division K ($220,000) equals the total service department charges ($755,000).

Income from Operations for Division K Is $220,000, and Income