Andover,, Inc., has two producing departments. Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows:
Normal support department usage is 8,000 hours each for Department L and Department M. Assuming the direct method is used and the purpose is product costing, support department costs allocated to Department L are
A) $30,000.
B) $20,400.
C) $24,800.
D) $20,000.
Correct Answer:
Verified
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