Q 145

Quillen Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to the company: img -Refer to Quillen Company. Using the direct method, how much of the support department costs will be allocated from Department S2 to the Cutting Department? A) $30,000 B) $54,000 C) $120,000 D) $126,000

Multiple Choice