Operating income of the Pierce Automobile Division is $2,225,000. If operating income before support department allocations is $3,250,000,
A)operating expenses are $1,025,000
B)total support department allocations are $1,025,000
C)noncontrollable charges are $1,025,000
D)direct manufacturing charges are $1,025,000

Question

Quizplus · Accepted Answer

The difference between operating income before support department allocations ($3,250,000) and operating income after allocations ($2,225,000) is the total support department allocations, which is $1,025,000.

Operating Income of the Pierce Automobile Division Is $2,225,000