Quan Company has three support departments whose direct department costs are $20,000, $30,000, and $40,000, respectively, and two producing departments whose direct department costs are $400,000 and $360,000, respectively.The combined total department cost for the producing departments after allocation of the support departments is

Question

Quizplus · Accepted Answer

The total direct costs for the producing departments are $400,000 and $360,000, which sum to $760,000. Adding the support departments' costs ($20,000 + $30,000 + $40,000 = $90,000) to this total gives $850,000.

Quan Company Has Three Support Departments Whose Direct Department Costs