Parker Company has two service departments, cafeteria and engineering, and two operating departments. The number of employees in each department is given below:
The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, the amount of cost allocated to Engineering under the direct method would be:
A) $0
B) $3,700
C) $3,750
D) $17,344

Question

Parker Company has two service departments, cafeteria and engineering, and two operating departments. The number of employees in each department is given below: 
The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, the amount of cost allocated to Engineering under the direct method would be:
A) $0 
B) $3,700 
C) $3,750 
D) $17,344

Quizplus · Accepted Answer

The Answer of Parker Company has two service departments, cafeteria and engineering, and two operating departments. The number of employees in each department is given below: 
The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, the amount of cost allocated to Engineering under the direct method would be:
A) $0 
B) $3,700 
C) $3,750 
D) $17,344

Parker Company Has Two Service Departments, Cafeteria and Engineering, and Two