Question: 13. Using the direct method of allocation, assume an overhead department has $350,000 in expenses, there are two revenue producing departments, Dept A and Dept

13. Using the direct method of allocation, assume an overhead department has $350,000 in expenses, there are two revenue producing departments, Dept A and Dept B, and costs are allocated based on number of patient visits. Dept A has 3500 visits and Dept B has 6,500 visits. How much of the overhead department expense is allocated to Dept A?

	1.	$122,500
	2.	$40,000
	3.	$60,000
	4.	$227,500

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