Andover, Inc., has two producing departments. Each producing department is held responsible for a share of the costs of a support department. Actual and budgeted data are as follows: Support department hours used:
Support department costs:
Normal support department usage is 8,000 hours each for Department X and Department Y. Assuming the direct method is used and the purpose is performance evaluation, support department costs allocated to Department X are
A) $45,000.
B) $36,400.
C) $40,000.
D) $36,000.
Correct Answer:
Verified
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