Question: Climax Mines uses the direct method for assigning service center costs to Revenue Centers M and N. The costs, cost drivers, and statistics are as

Climax Mines uses the direct method for assigning service center costs to Revenue Centers M and N. The costs, cost drivers, and statistics are as follows:


Climax Mines uses the direct method for assigning service center


Using the direct method, assign service center costs to Mine M and Mine N. Carry your answers to three decimalplaces.

Costs $500,000 Cost Drivers Number of employees Mine Administration Equipment Maintenance $50,000 Number of Employees 10 Number of square feet Number of Square Feet 1,800 Center Mine Administration Equipment Maintenance Mine M Mine N 24 58 3,200 6,000 8.000

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