Use the following information for the next 4 questions.
Trucker Industries provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments:
-For the direct method, what proportion of Personnel costs will be allocated to the Machining Department?
A) 30%
B) 10%
C) 42.9%
D) 14.3%

Question

Use the following information for the next 4 questions.
Trucker Industries provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments: 
-For the direct method, what proportion of Personnel costs will be allocated to the Machining Department?
A) 30% 
B) 10% 
C) 42.9% 
D) 14.3%

Quizplus · Accepted Answer

The direct method allocates costs directly to departments based on their usage. If the Machining Department uses 42.9% of the Personnel costs, then that is the proportion allocated to it.

Use the Following Information for the Next 4 Questions