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 $ 54,365 Personnel $ 34,560 Operating Department Assembly Finishing $ 314,500 $ 677,630 Departmental costs Computer workstations Employees 53 35 68 63 47 30 75 60 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 $54,365 $26,145 $19.200 $28,220

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$ 54,365
Operating Department
Assembly
$ 314,500
Personnel
Finishing
$ 677,630
$ 34,560
Departmental costs
Computer workstations
Employees
53
35
68
63
47
30
75
60
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
$54,365
$26.145
$19,200
$28,220
Transcribed Image Text: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 $ 54,365 Operating Department Assembly $ 314,500 Personnel Finishing $ 677,630 $ 34,560 Departmental costs Computer workstations Employees 53 35 68 63 47 30 75 60 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 $54,365 $26.145 $19,200 $28,220
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