Question: A company is using direct method for allocating variable cost of support department D1 based on the number of transactions in two operating departments, M1

A company is using direct method for allocating variable cost of support department D1 based on the number of transactions in two operating departments, M1 & N1. The total departmental variable cost of support department D1 is $6,000 and number of transactions in operating departments M1 and N1 are 100 and 50. The allocated variable cost will be:

	a.	Department M1 = $2,500 & Department N1 = 3,500
	b.	Department M1 = $1,000 & Department N1 = 5,000
	c.	Department M1 = $3,000 & Department N1 = $3,000
	d.	Department M1 = $4,000 & Department N1 = $2,000

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