Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B)....

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Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B). The following data are given: Services Provided By Direct costs Services provided to: Utilities SR55,000 Computer SR75,000 Operating department A Operating department B If the direct method were used, how much computer cost would be allocated to the utilities department? 35% 40% 55% 30% If the direct method were used, how much computer cost would be allocated to operating department B? Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B). The following data are given: Services Provided By Direct costs Services provided to: Utilities SR55,000 Computer SR75,000 Operating department A Operating department B If the direct method were used, how much computer cost would be allocated to the utilities department? 35% 40% 55% 30% If the direct method were used, how much computer cost would be allocated to operating department B?

Answer rating: 100% (QA)

The direct method allocates support department costs only to operating departments without any recip... View the full answer