Roller Company has two service departments,Maintenance and Personnel.Roller Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year: If the direct method is used to allocate service department costs,then the total cost of the Personnel Department after the Maintenance Department cost allocation would be ________.
A)$33,600
B)$38,640
C)$39,900
D)$63,480

Question

Roller Company has two service departments,Maintenance and Personnel.Roller Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year:  If the direct method is used to allocate service department costs,then the total cost of the Personnel Department after the Maintenance Department cost allocation would be ________.
A)$33,600 
B)$38,640 
C)$39,900 
D)$63,480

Quizplus · Accepted Answer

The Answer of Roller Company has two service departments,Maintenance and Personnel.Roller Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year:  If the direct method is used to allocate service department costs,then the total cost of the Personnel Department after the Maintenance Department cost allocation would be ________.
A)$33,600 
B)$38,640 
C)$39,900 
D)$63,480

Roller Company Has Two Service Departments,Maintenance and Personnel