Operating income for Division M is $150,000, and operating income before service department charges is $975,000.Therefore,:
A) total operating expenses are $825,000.
B) total manufacturing expenses are $825,000.
C) direct materials, direct labor, and factory overhead total $825,000.
D) total service department charges are $825,000.

Question

Quizplus · Accepted Answer

Operating income before service department charges ($975,000) minus operating income after service department charges ($150,000) equals the total service department charges ($825,000).

Operating Income for Division M Is $150,000, and Operating Income