Parker Company has two service departments—cafeteria and engineering—and two operating departments. The number of employees in each department is given below: Cafeteria 10 Engineering 40 Operating Department 1 500 Operating Department 2 200 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?
Parker Company has two service departments—cafeteria and engineering—and two operating departments. The number of employees in each department is given below: Cafeteria 10 Engineering 40 Operating Department 1 500 Operating Department 2 200 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?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Parker Company has two service departments—cafeteria and engineering—and two operating departments. The number of employees in each department is given below:
Cafeteria
10
Engineering
40
Operating Department 1
500
Operating Department 2
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?
Question 20 options:
$ 3,700.
$ 0.
$ 3,750.
$17,344.
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