Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly:  Line Item Description Square Feet Number ofEmployees Janitorial Department 100     20        Cafeteria Department 10,000     10        Cutting Department 2,000     60        Assembly Department 8,000     20        The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is a. 75% b. 18% c. 25% d. 22%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: 

Line Item Description Square Feet Number of
Employees
Janitorial Department 100     20       
Cafeteria Department 10,000     10       
Cutting Department 2,000     60       
Assembly Department 8,000     20       

The percentage (proportional) usage of the Cafeteria Department by the Assembly Department is

a. 75%
b. 18%
c. 25%
d. 22%
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