Credit Management Solutions provides two types of credit reports: Individual and Business. They vary based on the amount of background information and data collection required. The Business reports use more skilled personnel because of the additional information that needs to be verified. Total support services costs to be allocated are $960,000. The following information is also provided:
For each potential allocation base, determine the support department cost allocated to each type of report using the direct method. (Do not round intermediary calculations, round your final answer to the nearest whole dollar)
Correct Answer:
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Individual $192,000
Busi...
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