Anderson Company has two service departments and two producing departments. The costs of the Personnel Department are allocated to other departments on the basis of the number of employees in the departments. Departments and number of employees are as follows: Employees Personnel Department ........... 30 Engineering Department ......... 90 Producing Department No. 1 ..... 590 Producing Department No. 2 ..... 290 Total employees ................ 1 000 Costs in the Personnel Department total R900 000 per year. The amount of Personnel Department cost that would be allocated to Producing Department 2 under the direct method would be:
Anderson Company has two service departments and two producing departments. The costs of the Personnel Department are allocated to other departments on the basis of the number of employees in the departments. Departments and number of employees are as follows:
Employees
Personnel Department ........... 30
Engineering Department ......... 90
Producing Department No. 1 ..... 590
Producing Department No. 2 ..... 290
Total employees ................ 1 000
Costs in the Personnel Department total R900 000 per year.
The amount of Personnel Department cost that would be allocated to Producing Department 2 under the direct method would be:
| A. |
R261 000 |
|
| B. |
R0 |
|
| C. |
R296 591 |
|
| D. |
R269 072 |
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