Assume Millard allocates service department costs by the direct method. After all allocations, the total amount of overhead costs in Operating Department 1 will be:
A)$155,000
B)$191,000
C)$157,100
D)$176,000

Question

Quizplus · Accepted Answer

Millard allocates service department costs by the direct method. This means that the costs of the service departments are allocated directly to the operating departments. In this case, the total amount of overhead costs in Operating Department 1 will be $155,000.

Assume Millard Allocates Service Department Costs by the Direct Method