Use the information below to answer the following question(s).Joe's Tire Company has two support departments, Personnel and Maintenance.The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used.The Personnel Department costs of $20,000 are allocated based on the number of employees.Costs of Departments A and B are $40,000 and $60,000, respectively.Data on standard service hours and number of employees are as follows:

-How much of the cost of the Personnel Department is allocated to Department B using the direct method?
A)$8,000
B)$15,000
C)$5,000
D)$12,632
E)$60,000

Question

Use the information below to answer the following question(s).Joe's Tire Company has two support departments, Personnel and Maintenance.The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used.The Personnel Department costs of $20,000 are allocated based on the number of employees.Costs of Departments A and B are $40,000 and $60,000, respectively.Data on standard service hours and number of employees are as follows:
 
-How much of the cost of the Personnel Department is allocated to Department B using the direct method?
A)$8,000 
B)$15,000 
C)$5,000 
D)$12,632 
E)$60,000

Quizplus · Accepted Answer

The Answer of Use the information below to answer the following question(s).Joe's Tire Company has two support departments, Personnel and Maintenance.The Maintenance Department costs of $80,000 are allocated on the basis of standard service hours used.The Personnel Department costs of $20,000 are allocated based on the number of employees.Costs of Departments A and B are $40,000 and $60,000, respectively.Data on standard service hours and number of employees are as follows:
 
-How much of the cost of the Personnel Department is allocated to Department B using the direct method?
A)$8,000 
B)$15,000 
C)$5,000 
D)$12,632 
E)$60,000

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