Use the following information for the next 5 questions.
Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B). The following data are given:
-If the direct method were used, how much computer cost would be allocated to the utilities department?
A) $0
B) $18,750
C) $11,250
D) $ 8,250

Question

Use the following information for the next 5 questions.
Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B). The following data are given: 
-If the direct method were used, how much computer cost would be allocated to the utilities department?
A) $0 
B) $18,750 
C) $11,250 
D) $ 8,250

Quizplus · Accepted Answer

The direct method does not allocate costs to service departments, so the computer cost would not be allocated to the utilities department.

Use the Following Information for the Next 5 Questions