Hillary Corporation has two service departments (Human Resources and Accounting & Finance) and two production departments (Machining and Assembly). The company allocates Human Resources cost on the basis of square footage and believes that Human Resources provides more service than Accounting & Finance. The square footage occupied by each department follows. $\begin{array} { l l }
\text { Human Resources } & 12,000 \
\text { Accounting and Finance } & 15,000 \
\text { Machining } & 40,000 \
\text { Assembly } & 26,000
\end{array}$ Assuming use of the direct method, over how many square feet would the Accounting and Finance cost be allocated?

Question

Hillary Corporation has two service departments (Human Resources and Accounting & Finance) and two production departments (Machining and Assembly). The company allocates Human Resources cost on the basis of square footage and believes that Human Resources provides more service than Accounting & Finance. The square footage occupied by each department follows. $\begin{array} { l l } 
\text { Human Resources } & 12,000 \
\text { Accounting and Finance } & 15,000 \
\text { Machining } & 40,000 \
\text { Assembly } & 26,000
\end{array}$ Assuming use of the direct method, over how many square feet would the Accounting and Finance cost be allocated?

Quizplus · Accepted Answer

The Answer of Hillary Corporation has two service departments (Human Resources and Accounting & Finance) and two production departments (Machining and Assembly). The company allocates Human Resources cost on the basis of square footage and believes that Human Resources provides more service than Accounting & Finance. The square footage occupied by each department follows. $\begin{array} { l l } 
\text { Human Resources } & 12,000 \
\text { Accounting and Finance } & 15,000 \
\text { Machining } & 40,000 \
\text { Assembly } & 26,000
\end{array}$ Assuming use of the direct method, over how many square feet would the Accounting and Finance cost be allocated?

Hillary Corporation Has Two Service Departments (Human Resources and Accounting