What is the total amount of service department costs that would be allocated to the assembly department, assuming Hampton uses the direct-method to allocate the service department costs?
A) $187,000
B) $165,000
C) $171,583
D) $136,334

Question

Quizplus · Accepted Answer

The direct method allocates service department costs directly to production departments without considering services provided between service departments. The correct allocation to the assembly department is $187,000.

What Is the Total Amount of Service Department Costs That