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 Maintenance Department is allocated to Department B using the direct method?
A) $60,000
B) $12,800
C) $32,000
D) $21,333
E) $5,333

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 Maintenance Department is allocated to Department B using the direct method?
A) $60,000 
B) $12,800 
C) $32,000 
D) $21,333 
E) $5,333

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 Maintenance Department is allocated to Department B using the direct method?
A) $60,000 
B) $12,800 
C) $32,000 
D) $21,333 
E) $5,333

Use the Information Below to Answer the Following Question(s)