Department X had total sales of $60,000, and Department Y had total sales of $90,000. General office expenses totaling $3,000 are allocated based on total sales. How much of the $3,000 should be allocated to Department X? Options: a) $1,800 b) $1,000 c) $1,200 d) $1,500
Department X had total sales of $60,000, and Department Y had total sales of $90,000. General office expenses totaling $3,000 are allocated based on total sales. How much of the $3,000 should be allocated to Department X? Options: a) $1,800 b) $1,000 c) $1,200 d) $1,500
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Transcribed Image Text:Department X had total sales of $60,000, and
Department Y had total sales of $90,000.
General office expenses totaling $3,000 are allocated
based on total sales.
How much of the $3,000 should be allocated to
Department X?
Options:
a) $1,800
b) $1,000
c) $1,200
d) $1,500
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