What is the amount of supervision that would be allocated to the machining department, assuming Hampton uses the direct-method to allocate the costs of service departments?
A) $72,000
B) $93,333
C) $90,000
D) $80,000

Question

Quizplus · Accepted Answer

The direct method allocates service department costs directly to production departments without recognizing any service provided between service departments. The amount allocated to the machining department would be $90,000.

What Is the Amount of Supervision That Would Be Allocated