Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly: The percentage (proportional) usage of the Janitorial Department by the Cutting Department is
A)20%
B)80%
C)10%
D)9.9%

Question

Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly:  The percentage (proportional) usage of the Janitorial Department by the Cutting Department is
A)20% 
B)80% 
C)10% 
D)9.9%

Quizplus · Accepted Answer

The Answer of Using the direct method, Pone Hill Company allocates Janitorial Department costs based on square footage serviced. It allocates Cafeteria Department costs based on the number of employees served. It has the following information about its two service departments and two production departments, Cutting and Assembly:  The percentage (proportional) usage of the Janitorial Department by the Cutting Department is
A)20% 
B)80% 
C)10% 
D)9.9%

Using the Direct Method, Pone Hill Company Allocates Janitorial Department