Question: 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
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 | $756,000 | $540,000 |
| 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
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