The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: If the direct method is used, the total cost (including allocations) for the packaging department will be:
A) $26,667
B) $355,250
C) $54,792
D) $354,792

Question

The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected:  If the direct method is used, the total cost (including allocations) for the packaging department will be:
A) $26,667 
B) $355,250 
C) $54,792 
D) $354,792

Quizplus · Accepted Answer

The Answer of The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected:  If the direct method is used, the total cost (including allocations) for the packaging department will be:
A) $26,667 
B) $355,250 
C) $54,792 
D) $354,792

The Accountant for Milton, Inc