Income from operations for Division H is $220,000, and income from operations before service department charges is $975,000. As a result,
A) total operating expenses are $565,000
B) total manufacturing expenses are $565,000
C) direct materials, direct labor, and factory overhead total $565,000
D) total service department charges are $755,000

Question

Quizplus · Accepted Answer

The difference between income from operations before service department charges ($975,000) and income from operations ($220,000) is due to service department charges, which equals $755,000.

Income from Operations for Division H Is $220,000, and Income