The amount of Personnel Department cost that would be allocated to Operating Department 2 under the direct method would be:
A)$0
B)$388,500
C)$420,000
D)$370,000

Question

Quizplus · Accepted Answer

The direct method allocates service department costs directly to operating departments based on a specific allocation base. The cost allocated to Operating Department 2 is $420,000.

The Amount of Personnel Department Cost That Would Be Allocated