Koehl Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Administrative and Facilities, and two operating departments, Assembly and Wholesaling. Service Departments Administrative Facilities $ 19,440 Operating Department Assembly Wholesaling $ 392,950 14,000 $ 71,340 $ 185,580 Departmental costs Employee hours Space occupied 4,000 2,000 22,000 2,000 1,000 39,000 2,000 Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied. The total Wholesaling Department cost after the allocations of service department costs is closest to: Multiple Choice $403,990 $396,430

Koehl Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Administrative and Facilities, and two operating departments, Assembly and Wholesaling. Service Departments Administrative Facilities $ 19,440 Operating Department Assembly Wholesaling $ 392,950 14,000 $ 71,340 $ 185,580 Departmental costs Employee hours Space occupied 4,000 2,000 22,000 2,000 1,000 39,000 2,000 Administrative costs are allocated on the basis of employee hours and Facilities costs are allocated on the basis of space occupied. The total Wholesaling Department cost after the allocations of service department costs is closest to: Multiple Choice $403,990 $396,430

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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