Use the following information for the next 4 questions.
Quinlan, Inc. has two support departments (maintenance and personnel) and two operating departments (tables and chairs). The maintenance department provides more services to the personnel department than the personnel department provides to maintenance. Once the support department costs have been allocated to the operating departments, each operating department allocates its total costs to units produced.
-Assume the direct method is used. The cost per unit in the chair department would be
A) $20.275 per chair
B) $23.509 per chair
C) $25.147 per chair
D) $25.900 per chair

Question

Use the following information for the next 4 questions.
Quinlan, Inc. has two support departments (maintenance and personnel) and two operating departments (tables and chairs). The maintenance department provides more services to the personnel department than the personnel department provides to maintenance. Once the support department costs have been allocated to the operating departments, each operating department allocates its total costs to units produced. 
-Assume the direct method is used. The cost per unit in the chair department would be
A) $20.275 per chair 
B) $23.509 per chair 
C) $25.147 per chair 
D) $25.900 per chair

Quizplus · Accepted Answer

The cost per unit in the chair department would be $20.275 per chair because the direct method only includes direct costs in the cost of goods sold.

Use the Following Information for the Next 4 Questions