JD Company has two service departments whose direct department costs are $15,000 and $25,000, respectively, and two producing departments whose direct department costs are $210,000 and $200,000, respectively.
The combined total department costs for the producing departments after allocating the service departments are:
A) $460,000
B) $415,000
C) $400,000
D) $450,000

Question

Quizplus · Accepted Answer

Service department costs of $40,000, which will be allocated to the producing departments, plus direct department costs of $410,000, equals $450,000.

JD Company Has Two Service Departments Whose Direct Department Costs