(Appendix 11A) Parker Company has two service departments-cafeteria and engineering- and two operating departments. The number of employees in each department is given below: Cafeteria Engineering Operating Department 1 Operating Department 2 10 40 500 200 The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, what would be the amount of cost allocated to Engineering under the direct method?
(Appendix 11A) Parker Company has two service departments-cafeteria and engineering- and two operating departments. The number of employees in each department is given below: Cafeteria Engineering Operating Department 1 Operating Department 2 10 40 500 200 The costs of the Cafeteria are allocated to other departments on the basis of the number of employees in the departments. If these costs are budgeted at $69,375, what would be the amount of cost allocated to Engineering under the direct method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(Appendix 11A) Parker Company has two service departments-cafeteria and engineering-
and two operating departments. The number of employees in each department is given
below:
Cafeteria
Engineering
Operating Department 1
Operating Department 2
The costs of the Cafeteria are allocated to other departments on the basis of the number
of employees in the departments. If these costs are budgeted at $69,375, what would be
the amount of cost allocated to Engineering under the direct method?
Multiple Choice
O $0
O $3,700
$3,750
10
40
500
200
O $17,344
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