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 2 costs allocated to producing 2 would be:
A) $4,800
B) $4,364
C) $9,600
D) $5,600
Correct Answer:
Verified
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