Danville Manufacturing The Danville Manufacturing Company has two service departments and two production departments. The following data are available for 2011.
The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied, respectively.
Assuming that Danville Manufacturing Company uses the direct method of allocating service costs, the amount of service department 1 costs allocated to production department 1 would be: (If necessary, round your answer to the nearest whole number.)
A) $ 5,143
B) $ 3,000
C) $12,000
D) $ 8,000
Correct Answer:
Verified
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