Direct method Andreka Inc. uses the direct method to allocate support department costs to production departments (fabricating and finishing). Information for June follows.

	Human Resources	Administration
Service department costs	$630,000	$450,000
Services provided to other departments
Human resources		10%
Administration	20%
Fabricating	35%	50%
Finishing	45%	40%

a. What amounts of human resources and administration costs should be assigned to Fabricating for June?

Answer

b. What amounts of human resources and administration costs should be assigned to Finishing for June?

Answer