Question: Selecting an Allocation Base for Service Costs. Winstead, Inc., is looking for an appropriate allocation base to allocate personnel costs totaling $5,000,000. Service department costs
Selecting an Allocation Base for Service Costs. Winstead, Inc., is looking for an appropriate allocation base to allocate personnel costs totaling $5,000,000. Service department costs are allocated to three production departments: Assembly, Sanding, and Finishing. Management is considering two allocation bases.
Required:
1- Calculate the amount of personnel department costs allocated to production departments using each allocation base.
2- Which allocation base do you think is most reasonable? Why?

42. Selecting an Allocation Base for Service Costs. Winstead, Inc., is looking for an appropriate allocation base to allocate personnel costs totaling $5,000,000. Service department costs are allocated to three production departments: Assembly, Sanding, and Finishing. Management is considering two allocation bases. Required: 1. Calculate the amount of personnel department costs allocated to production departments using each allocation base. 2. Which allocation base do you think is most reasonable? Why
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