Stoltz Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Data Processing and Personnel, andtwo operating departments, Assembly and Finishing.Service DepartmentData Processing$ 26,488Operating DepartmentAssembly$ 188,980Finishing$ 506,960Personnel$ 18,630Departmental costsComputer workstationsEmployees3712454135114635Data Processing Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total amount ofData Processing Department cost allocated to the two operating departments is closest to:Multiple Choice$23,245$26,488$61,567$16,874

The department costs can be allocated on the basis of direct method and step allocation method.

Stoltz Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Data Processing and Personnel, and two operating departments, Assembly and Finishing. Service Department Data Processing $ 26,488 Operating Department Assembly $ 188,980 Personnel Finishing $ 506,960 $ 18,630 Departmental costs Computer workstations Employees 37 12 45 41 35 11 46 35 Data Processing Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total amount of Data Processing Department cost allocated to the two operating departments is closest to: Multiple Choice $23,245 $26,488 $61,567 $16 874

Stoltz Corporation uses the direct method to allocate service department costs to operating departments. The company has two service departments, Data Processing and Personnel, and two operating departments, Assembly and Finishing. Service Department Data Processing $ 26,488 Operating Department Assembly $ 188,980 Personnel Finishing $ 506,960 $ 18,630 Departmental costs Computer workstations Employees 37 12 45 41 35 11 46 35 Data Processing Department costs are allocated on the basis of computer workstations and Personnel Department costs are allocated on the basis of employees. The total amount of Data Processing Department cost allocated to the two operating departments is closest to: Multiple Choice $23,245 $26,488 $61,567 $16 874

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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