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Using the direct method, Thomas Company allocates Maintenance Department costs based on squa epartments. It allocates Cafeteria Department costs based on the number of employees served in t has the following information about its two service departments and two production departments Maintenance Department Cafeteria Department Cutting Department Assembly Department Square Feet 500 3,000 1,520 6400 Number of Employees 20 10 60 20

Using the direct method, Thomas Company allocates Maintenance Department costs based on squa epartments. It allocates Cafeteria Department costs based on the number of employees served in t has the following information about its two service departments and two production departments Maintenance Department Cafeteria Department Cutting Department Assembly Department Square Feet 500 3,000 1,520 6400 Number of Employees 20 10 60 20

FINANCIAL ACCOUNTING
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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am. 118.

Using the direct method, Thomas Company allocates Maintenance Department costs based on square fo departments. It allocates Cafeteria Department costs based on the number of employees served in the It has the following information about its two service departments and two production departments, Cut Maintenance Department Cafeteria Department Cutting Department Assembly Department Square Feet 500 3,000 1,520 6,480 Number of Employees 20 10 60 20 What is the percentage (proportional) usage of the Maintenance Department by the Cutting Department? O a. 28% O b. 19% O c. 25% O d. 13%
Transcribed Image Text:Using the direct method, Thomas Company allocates Maintenance Department costs based on square fo departments. It allocates Cafeteria Department costs based on the number of employees served in the It has the following information about its two service departments and two production departments, Cut Maintenance Department Cafeteria Department Cutting Department Assembly Department Square Feet 500 3,000 1,520 6,480 Number of Employees 20 10 60 20 What is the percentage (proportional) usage of the Maintenance Department by the Cutting Department? O a. 28% O b. 19% O c. 25% O d. 13%
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