The ABC Company separates its activities into two operating…

Written by Anonymous on March 15, 2025 in Uncategorized with no comments.

Questions

The ABC Cоmpаny sepаrаtes its activities intо twо operating departments and two support departments. Support Department 1 had budgeted costs of $90,000 and Support Department 2 had budgeted cost of $180,000 during the month of April. ABC allocates the costs of each support department based on service hours. The table presented here shows how many service hours each support department provided to the two operating departments, to the other support department, and to itself. Support 1 Support 2 Operating 1 Operating 2 Total Service Hours Provided Support 1 20 25 27 48 120 Support 2 1,000 400 3,000 2,000 6,400 If ABC uses the direct method to allocate support department costs, how much will be allocated to Operating Department 1 and Operating Department 2, respectively, in April?

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