The Lorenzo Printing Company has two production departments (printing and binding) and three service departments (power generation,factory maintenance,and human resources) .A summary of costs and other data for each department,prior to allocation of service department costs for the year ended April 30,appears below. The costs of the power generation department,factory maintenance department,and human resources are allocated on the basis of kilowatt hours,square footage occupied,and number of employees,respectively.
Assuming that Lucas elects to distribute service department costs to production departments using the direct distribution method,the amount of human resources department costs that would be allocated to the printing department would be (round all final calculations to the nearest dollar) :
A) $15,000.
B) $12,000.
C) $16,000.
D) $18,000.
Correct Answer:
Verified
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