Franca Corporation has two service departments, Administrative and Facilities, and two operating departments, Assembly and Customer Feedbacks. The company uses the direct method to allocate service department costs to operating departments. Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied.
-The total Customer solutions Department cost after the allocations of service department costs is closest to:

Question

Franca Corporation has two service departments, Administrative and Facilities, and two operating departments, Assembly and Customer Feedbacks.  The company uses the direct method to allocate service department costs to operating departments. Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied.
-The total Customer solutions Department cost after the allocations of service department costs is closest to:

Quizplus · Accepted Answer

The total Customer solutions Department cost after the allocations of service department costs is $696,940. This is because the Customer solutions Department was allocated $14,000 from the Human Resources Department, $12,000 from the Information Systems Department, and $10,000 from the Maintenance Department. This brings the total cost of the Customer solutions Department to $696,940.

Franca Corporation Has Two Service Departments, Administrative and Facilities, and Two