Harry Dishman owns and operates Harry's Septic Service and Legal Advice.Harry'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.

Question

Harry Dishman owns and operates Harry's Septic Service and Legal Advice.Harry'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.

Quizplus · Accepted Answer

The Answer of Harry Dishman owns and operates Harry's Septic Service and Legal Advice.Harry'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.

Harry Dishman Owns and Operates Harry's Septic Service and Legal