Question: Please answer this TRUE/FALSE Question with explanation!! Thank you Using the direct method of allocation, assume an overhead department has $127,500 in expenses. There are

Please answer this TRUE/FALSE Question with explanation!! Thank you

Using the direct method of allocation, assume an overhead department has $127,500 in expenses. There are two revenue producing departments, Dept A and Dept B, and costs are allocated based on number of patient visits. Dept A has 3,700 visits and Dept B has 8,100 visits. Is it true that Dept A is allocated $39,780 in overhead costs?

Question 3 options:

True
False

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!