Department A had total sales of $84,000 and Department B had total sales of $36,000. Other office expenses, totaling $2,500 are allocated on the basis of total sales. The amount allocated to Department B is: a) $750 b) $1,750 c) $1,250 d) $1,071
Department A had total sales of $84,000 and Department B had total sales of $36,000. Other office expenses, totaling $2,500 are allocated on the basis of total sales. The amount allocated to Department B is: a) $750 b) $1,750 c) $1,250 d) $1,071
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 5E: Service department charges In divisional income statements prepared for Demopolis Company, the...
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Transcribed Image Text:Department A had total sales of $84,000 and Department B
had total sales of $36,000. Other office expenses, totaling
$2,500 are allocated on the basis of total sales. The amount
allocated to Department B is:
a) $750
b) $1,750
c) $1,250
d) $1,071
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