Chambers, Inc. has two support departments (utilities and computer)and two operating departments (A and B). The following data are given: Services Provided By
Utilities Computer
Direct costs $55,000 $75,000
Services provided to:
Utilities ---- 15%
Computer 25% ----
Operating department A 35% 55%
Operating department B 40% 30%
If the direct method is used, how much total cost would be allocated to operating department A?
A)$60,500
B)$55,804
C)$58,500
D)$74,196

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The Answer of Chambers, Inc. has two support departments (utilities and computer)and two operating departments (A and B). The following data are given: Services Provided By
Utilities Computer
Direct costs $55,000 $75,000
Services provided to:
Utilities ---- 15%
Computer 25% ----
Operating department A 35% 55%
Operating department B 40% 30%
If the direct method is used, how much total cost would be allocated to operating department A?
A)$60,500
B)$55,804
C)$58,500
D)$74,196