Question: Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Direct overhead Square

Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Direct overhead Square

Direct Method Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments: Direct overhead Square footage Number of receiving orders Direct labor hours Support Departments Producing Departments General Factory Receiving Assembly Finishing $410,000 $160,000 $49,000 $78,000 2,600 5,200 5,200 400 1,600 1,400 24,000 41,000 The company has decided to simplify its method of allocating support service costs by switching to the direct method.

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